If you have any questions concerning this filing, you may contact me at (617) 662-3969.

Very truly yours,

/s/ Francine S. Hayes

Francine S. Hayes

Vice President and Managing Counsel

cc:

E. Powell

EX-101.INS
2
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preserve capital and mitigate risk through hedging activities.Fees and Expenses of the FundExpense ExampleShareholder Fees (fees paid directly from your investment)Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)This Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the period of October 31, 2011 (the date the Fund commenced operations) through September 30, 2012, the Fund had a portfolio turnover rate of 2,624% (not annualized) of the average value of its portfolio.Principal Investment StrategiesThe Fund seeks to achieve its investment objective by allocating assets among proprietary technically-based trend following strategies. The Fund takes long and short positions in broad index based securities (primarily domestically-listed foreign equity exchange-traded funds (&#8220;ETFs&#8221;)) based on long and intermediate term trends. The Fund also employs short term counter trend strategies that seek to hedge the trend following strategy and mitigate risk, while seeking to profit from short term market volatility. The strategies are intended to have low correlation with market benchmarks and with each other. <br /><br />Anchor Capital Management Group, Inc. (&#8220;Anchor&#8221;), sub-adviser of the Fund, will allocate Fund assets among strategies that it believes offer the potential for attractive investment returns individually and that are expected to blend within the Fund&#8217;s portfolio so that it will have lower correlation and lower volatility relative to the market. In seeking to take advantage of increases or declines in the price of equity securities or indexes, the Fund may use stock baskets (groups of stocks that may be purchased through a single transaction) and exchange-traded notes (&#8220;ETNs&#8221;). In executing its counter trend strategy, the Fund may rotate investment positions among securities typically correlated to specific countries or regions. Security selection is determined through Anchor&#8217;s mathematical and statistical models; however, Anchor may alter such selection based on its assessment of current market conditions and other factors. <br/><br/> As part of its investment strategies, Anchor actively employs the use of cash and cash equivalents in an attempt to sidestep market declines and lower overall portfolio volatility. In particular, the Fund may invest all or substantially all of its assets in cash or cash equivalents when Anchor determines that market conditions so warrant. To the extent the Fund is invested heavily in cash, it may not achieve its investment objective and may experience negative returns.<br/><br/> The Fund may use derivatives, primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes. <br /><br />The Fund may invest, directly and indirectly (through derivatives and other pooled investment vehicles (including ETFs)), in securities of issuers of any market capitalization. The Fund may invest without limitation in investments tied economically to any country in the world, including emerging countries. The Fund is non-diversified as defined in the Investment Company Act of 1940, as amended (the &#8220;1940 Act&#8221;). The Fund is not intended to be a complete investment program.Principal RisksWhen you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br /><br /> <b>Equity Securities Risk</b> is the risk that stock prices will fall over short or long periods of time. In addition, common stocks represent a share of ownership in a company, and rank after bonds and preferred stock in their claim on the company&#8217;s assets in the event of bankruptcy.<br /><br /> <b>Exchange-Traded Funds Risk</b> is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br /><br /> <b>Short Sales Risk</b> is the risk of loss associated with any appreciation on the price of a security borrowed in connection with a short sale. The Fund may engage in short sales that are not made &#8220;against-the-box,&#8221; which means that the Fund may sell short securities even when they are not actually owned or otherwise covered at all times during the period the short position is open. Short sales that are not made &#8220;against-the-box&#8221; theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.<br /><br /> <b>Derivatives Risk</b> is the risk that an investment in derivatives, such as swaps, options and futures, may not correlate completely to the performance of the underlying securities or index and may be volatile, and may result in a loss greater than the principal amount invested. Equity derivatives may also be subject to liquidity risk, as well as the risk that the derivative is mispriced and that the value established for a derivative may be different than what would be produced through the use of another methodology or if it had been priced using market quotations.<br /><br /> <b>Counterparty Risk</b> is the risk that a counterparty (the other party to a transaction or an agreement or the party with whom the Fund executes transactions) to a transaction with the Fund may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise honor its obligations.<br /><br /> <b>Currency Risk</b> is the risk that fluctuations in exchange rates will adversely affect the value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.<br /><br /> <b>Foreign Investment Risk</b> is the risk that investing in foreign (non-U.S.) securities either directly or indirectly may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br /><br /> <b>Emerging Markets Risk</b> is the risk of investing in securities of companies located in emerging market countries, which primarily includes increased foreign investment risk. In addition, there are greater risks involved in investing in emerging markets, the economies of which tend to be more volatile than the economies of developed markets.<br /><br /> <b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br /><br /> <b>Hedging Risk</b> is the risk that, although intended to limit or reduce investment risk, hedging strategies may also limit or reduce the potential for profit. There is no assurance that hedging strategies will be successful.<br /><br /> <b>Illiquid and Restricted Securities Risk</b> is the risk that the Adviser may not be able to sell illiquid or restricted securities at the price it would like or may have to sell them at a loss. Securities of non-U.S. issuers, and emerging markets securities in particular, are subject to illiquidity risk.<br/><br/><b> Management Risk</b> is the risk that the Adviser or Anchor may be incorrect in its assessment of the intrinsic value of the securities the Fund holds which may result in a decline in the value of Fund shares and failure to achieve its investment objective. The Fund&#8217;s portfolio managers use quantitative analyses and/or models. Any imperfections or limitations in such analyses and models could affect the ability of the portfolio managers to implement strategies.<br /><br /> <b>Mid-Cap Company Risk</b> is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br /><br /> <b>Small-Cap Company Risk</b> is the risk that investing in the securities of small-cap companies either directly or indirectly through investments in ETFs, closed-end funds or mutual funds (&#8220;Underlying Funds&#8221;) may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br /><br /> <b>Exchange-Traded Notes Risk</b> is the risk that ETNs in which the Fund may invest are subject to credit risk and the value of an ETN may vary and may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or other related markets, changes in the applicable interest rates, changes in the issuer&#8217;s credit rating, and economic, legal, political, or geographic events. ETNs are debt securities whose returns are linked to a particular index. The Fund will bear its proportionate share of any fees and expenses borne by the ETN.<br /><br /> <b>Model Risk</b> is the risk that the models used by the Fund to determine or guide investment decisions may not achieve the objectives of the Fund. Additionally, the portfolio manager of the Fund is able to adjust the models or, under certain adverse conditions, to deviate from the models employed by the Fund. Such adjustments or deviations may not achieve the objectives of the Fund and may produce lower returns and/or higher volatility compared to what the returns and volatility of the Fund would have been if the portfolio manager had not adjusted or deviated from the models.<br /><br /> <b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.<br /><br /> <b>Portfolio Turnover Risk</b> is the risk that the Fund&#8217;s high portfolio turnover will increase its transaction costs and may result in increased realization of net short-term capital gains (which are taxable to shareholders as ordinary income when distributed to them), higher taxable distributions and lower after-tax performance. <br /><br /> An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its goal.PerformanceThe bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877- 665-1287.<b>Annual Total Returns </b>The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The highest calendar quarter total return for Class A Shares of the Fund was 7.04% for the quarter ended March 31, 2012 and the lowest calendar quarter total return was -3.29% for the quarter ended June 30, 2012. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 0.67%.Average Annual Total Returns <br/>(For the periods ended December 31, 2012)After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.50000The contingent deferred sales charge (&#8220;CDSC&#8221;) on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter.26.24When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.<b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance1-877- 665-1287After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.highest calendar quarter total return2012-03-310.0704lowest calendar quarter total return2012-06-30-0.03290.0575000000000.01000.020.020.020.02-0.02-0.02-0.02-0.020.020.020.020.020.00350.010.00500.020.020.020.020.00230.00230.00230.00230.04580.05230.04730.042310086224744251878156414251284275626002381215649835170479443965221564260051700.0067Investment Objective-0.0507-0.0537To provide shareholders with above-average total returns over a complete market cycle primarily through capital appreciation and income generation.-0.03290.00560.010.1732Fees and Expenses of the FundShareholder Fees (fees paid directly from your investment)-0.1195-0.1219-0.1028-0.0729-0.06990.0899Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the period January 12, 2012 (the date the Fund commenced operations) through September 30, 2012, the Fund had a portfolio turnover rate of 1,081% (not annualized) of the average value of its portfolio.Principal Investment StrategiesPrincipal RisksPerformance2011-11-012011-11-022011-11-022011-11-022011-11-092011-10-310.057500000000.020.020.020.0200.0100-0.02-0.02-0.02-0.02<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisAlphaTrendStrategiesFund column period compact * ~</div>
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Highland Trend Following Fund<br><br/><b>(formerly &#8220;Pyxis Trend Following Fund&#8221;)</b>Investment ObjectiveTo provide long-term capital appreciation consistent with capital preservation.Fees and Expenses of the Fund0.05750000.020.020.020.020.00350.010.00500.01420.01420.01420.01420.0030.0030.0030.0030.04070.04720.04220.037296042437417421281113825382152192045944388396700000000.020.020.020.020.01<b>Shareholder Fees</b> (fees paid directly from your investment)<b>Annual Fund Operating Expenses</b> (expenses that you pay each year as a percentage of the value of your investment)0.020.020.020.020.00350.010.00500.00330.00330.00330.00330.00380.00380.00380.00380.03060.03710.03210.0271When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br /><br /><b>Equity Securities Risk</b> is the risk that stock prices will fall over short or long periods of time. In addition, common stocks represent a share of ownership in a company, and rank after bonds and preferred stock in their claim on the company&#8217;s assets in the event of bankruptcy.<br /><br /> <b>Exchange-Traded Funds Risk</b> is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br /><br /><b>High Yield Securities Risk</b> is the risk that high yield securities or unrated securities of similar credit quality (commonly known as &#8220;junk bonds&#8221;) are more likely to default than higher rated securities. High yield securities are regarded as speculative with respect to the issuer&#8217;s capacity to pay interest and to repay principal. The market value of these securities is more sensitive to corporate developments and economic conditions and can be volatile. Market conditions can diminish liquidity and make accurate valuations difficult to obtain.<br /><br /><b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br /><br /><b>Credit Risk</b> is the risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br /><br /><b>Short Sales Risk</b> is the risk of loss associated with any appreciation on the price of a security borrowed in connection with a short sale. The Fund may engage in short sales that are not made &#8220;against-the-box,&#8221; which means that the Fund may sell short securities even when they are not actually owned or otherwise covered at all times during the period the short position is open. Short sales that are not made &#8220;against-the-box&#8221; theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.<br /><br /><b>Derivatives Risk</b> is the risk that an investment in derivatives, such as swaps, options and futures, may not correlate completely to the performance of the underlying securities or index and may be volatile, and may result in a loss greater than the principal amount invested. Equity derivatives may also be subject to liquidity risk, as well as the risk that the derivative is mispriced and that the value established for a derivative may be different than what would be produced through the use of another methodology or if it had been priced using market quotations.<br /><br /><b>Debt Securities Risk</b> is the risk that the issuer of a debt security may fail to pay interest or principal when due, and that changes in market interest rates may reduce the value of debt securities or reduce the Fund&#8217;s returns. The Fund may invest in debt securities, principally below investment grade securities, but also including investment grade securities and other debt obligations. During periods of economic uncertainty and change, the market price of the Fund&#8217;s investments in below investment grade securities may be particularly volatile.<br /><br /><b>Counterparty Risk</b> is the risk that a counterparty (the other party to a transaction or an agreement or the party with whom the Fund executes transactions) to a transaction with the Fund may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise honor its obligations.<br /><br /><b>Currency Risk</b> is the risk that fluctuations in exchange rates will adversely affect the value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.<br /><br /><b>Foreign Investment Risk</b> is the risk that investing in foreign (non-U.S.) securities either directly or indirectly may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Emerging Markets Risk</b> is the risk of investing in securities of companies located in emerging market countries, which primarily includes increased foreign investment risk. In addition, there are greater risks involved in investing in emerging markets, the economies of which tend to be more volatile than the economies of developed markets.<br /><br /><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br /><br /><b>Hedging Risk</b> is the risk that, although intended to limit or reduce investment risk, hedging strategies may also limit or reduce the potential for profit. There is no assurance that hedging strategies will be successful.<br /><br /><b>Illiquid and Restricted Securities Risk</b> is the risk that the Adviser may not be able to sell illiquid or restricted securities at the price it would like or may have to sell them at a loss. Securities of non-U.S. issuers, and emerging markets securities in particular, are subject to illiquidity risk.<br /><br /><b>Management Risk</b> is the risk that the Adviser or Anchor may be incorrect in its assessment of the intrinsic value of the securities the Fund holds which may result in a decline in the value of Fund shares and failure to achieve its investment objective. The Fund&#8217;s portfolio managers use qualitative analyses and/or models. Any imperfections or limitations in such analyses and models could affect the ability of the portfolio managers to implement strategies.<br /><br /><b>Mid-Cap Company Risk</b> is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br /><br /><b>Small-Cap Company Risk</b> is the risk that investing in the securities of small-cap companies either directly or indirectly through investments in ETFs, closed-end funds or mutual funds (&#8220;Underlying Funds&#8221;) may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br /><br /><b>Exchange-Traded Notes Risk</b> is the risk that ETNs in which the Fund may invest are subject to credit risk and the value of an ETN may vary and may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, changes in the issuer&#8217;s credit rating, and economic, legal, political, or geographic events. ETNs are debt securities whose returns are linked to a particular index.<br /><br /><b>Model Risk</b> is the risk that the models used by the Fund to determine or guide investment decisions may not achieve the objectives of the Fund. Additionally, the portfolio manager of the Fund is able to adjust the models or, under certain adverse conditions, to deviate from the models employed by the Fund. Such adjustments or deviations may not achieve the objectives of the Fund and may produce lower returns and/or higher volatility compared to what the returns and volatility of the Fund would have been if the portfolio manager had not adjusted or deviated from the models.<br /><br /><b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.<br /><br /><b>Portfolio Turnover Risk</b> is the risk that the Fund&#8217;s high portfolio turnover will increase its transaction costs and may result in increased realization of net short-term capital gains (which are taxable to shareholders as ordinary income when distributed to them), higher taxable distributions and lower after-tax performance. <br /><br />An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its goal.<b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The contingent deferred sales charge ("CDSC") on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter.The Fund commenced operations on January 12, 2012.After the Fund has had operations for at least one full calendar year, its Prospectus will include a bar chart and a table that will provide an indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s performance from year to year and by showing how the Fund&#8217;s average annual returns for the most recent one year, five years and ten years (or the life of the Fund, if shorter), compared to those of a broad measure of market performance.Although past performance of the Fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risks of investing in the Fund.The Fund commenced operations on January 12, 2012. After the Fund has had operations for at least one full calendar year, its Prospectus will include a bar chart and a table that will provide an indication of the risks of investing in the Fund by showing changes in the Fund&#8217;s performance from year to year and by showing how the Fund&#8217;s average annual returns for the most recent one year, five years and ten years (or the life of the Fund, if shorter), compared to those of a broad measure of market performance. Although past performance of the Fund is no guarantee of how it will perform in the future, historical performance may give you some indication of the risks of investing in the Fund.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleTransposedPyxisAlternativeIncomeFund column period compact * ~</div>
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The Fund seeks to achieve its investment objective under normal market conditions by allocating assets among proprietary technically-based trend following strategies. The Fund primarily takes long and short positions with respect to securities that are highly correlated to high yield corporate bonds (also known as &#8220;junk bonds&#8221;) based on long, intermediate, and short term trends. Such securities primarily will include domestically-listed exchange-traded funds (&#8220;ETFs&#8221;), exchange-traded notes (&#8220;ETNs&#8221;) and mutual funds with high yield corporate bond exposure in any industry or sector. Security selection is determined through Anchor Capital Management Group, Inc.&#8217;s (&#8220;Anchor&#8221; or the &#8220;Sub-Adviser&#8221;) mathematical and statistical models; however, the Sub-Adviser may alter such selection based on its assessment of current market conditions and other factors. <br /><br />The Sub-Adviser also actively employs the use of cash and cash equivalents as a strategic asset class in an attempt to both sidestep market declines as well as lower overall portfolio volatility, and the Fund may make investments in cash, cash equivalents and short-term debt securities and/or money market instruments in response to adverse market, economic or political conditions. In particular, the Fund may invest all or substantially all of its assets in cash or cash equivalents when the Sub-Adviser determines that market conditions so warrant. To the extent the Fund is invested heavily in cash, it may not achieve its investment objective and may experience negative returns. <br/><br/> The Fund may use derivatives, primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes. <br/><br/> The Fund may invest, directly and indirectly (through derivatives and other pooled investment vehicles (including ETFs, ETNs, and mutual funds)), in securities of issuers of any credit quality. The Fund may invest without limitation in investments tied economically to any country in the world, including emerging market countries. <br /><br />The Fund is non-diversified as defined in the Investment Company Act of 1940, as amended (the &#8220;1940 Act&#8221;). The Fund is not intended to be a complete investment program.86647332427414661135989841208919161678143537553958351230413731135191639580.0429-0.1355-0.0514-0.1058-0.1058-0.06880.0051-0.0372-0.1219-0.10280.0046Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 848% of the average value of its portfolio.Principal Investment StrategiesPrincipal RisksPerformanceCalendar Year Total ReturnExpense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.The highest calendar quarter total return for Class A Shares of the Fund was 8.23% for the quarter ended December 21, 2010 and the lowest calendar quarter total return was -8.26% for the quarter ended December 31, 2011. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was -5.14%.After-tax returns in the table above are shown for Class A Shares only and will differ for Class C, Class R and Class Y Shares. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.Under normal market conditions, the Fund is managed based on signals generated by a proprietary model maintained by the Fund&#8217;s sub-adviser (the &#8220;Model&#8221;). The Model is &#8220;technically weighted,&#8221; which means that it assigns a greater or lesser importance to asset classes based on signals derived from their price trends. For example, an individual asset class (such as stocks, bonds or commodities) may be assigned a heavier weighting in the portfolio based on its price being above its moving average or a lesser weighting if its price is below its moving average. The net effect being that the investment model switches in and out of broad asset classes based on their trends, providing investors an active asset allocation fund.<br/><br/>These proprietary, top-down strategies are intended to profit from market trends in both directions, with little regard for the prospects of individual equity or debt securities. Specifically, the portfolio manager will seek to take long positions (i.e., buy securities) during upward trends in certain securities prices and conversely sell and/or take short positions during downward trends in the price of such securities. The portfolio manager seeks to lower overall Fund volatility through diversification of asset classes, as well as the use of cash. Additionally, the portfolio manager&#8217;s trend-following methods seek to provide returns which are un-correlated to traditional managers and investment &#8220;styles,&#8221; such as growth and value.<br/><br/>The Fund primarily invests in exchange-traded funds (&#8220;ETFs&#8221;) which represent these broad asset classes as opposed to securities representing the debt or equity of individual companies. These ETFs invest primarily in (1) U.S. and foreign equity securities; (2) U.S. Government fixed income securities; (3) commodities; and (4) the U.S. dollar. ETFs are investment companies that seek to track the performance of securities indices or baskets of securities. The Fund&#8217;s portfolio may include ETFs that invest in both developed and emerging markets in Europe, the Far East, the Middle East, Africa, Australia, Latin America and North America. The Fund also may invest in exchange traded notes (&#8220;ETNs&#8221;), in much the same manner in which it invests in ETFs. The Fund may also invest directly in the securities which comprise the ETFs and ETNs discussed above, such as individual equities and government obligations, but excluding physical commodities. The Fund&#8217;s investments in U.S. fixed income markets may include other investment companies, such as closed-end funds and other open-end mutual funds (together with ETFs, &#8220;Underlying Funds&#8221;).<br/><br/>The Fund may employ both leveraged investment techniques as well as short positions, which allows the Fund a market exposure which can range from 150% net long (i.e., the Fund has more long (purchased) positions than short (borrowed) positions) to 50% net short (i.e., the Fund has more short (borrowed) positions than long (purchased) positions). Such extremes however, will be uncommon. The Fund may take a &#8220;short position&#8221; where the portfolio manager believes that the price of a security or value of an index will decline. The Fund may &#8220;short&#8221; a particular security by borrowing the security and selling it with the intent of later purchasing the security at a lower price. The Fund may also gain short exposure to an index by buying an ETF that has an inverse exposure to the index. The Fund is non-diversified as defined in the Investment Company Act of 1940, as amended (the &#8220;1940 Act&#8221;). The Fund is not intended to be a complete investment program.<br/><br/>The Fund may use derivatives, primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes.<br/><br/>In general, under normal market conditions, the portfolio manager makes investment decisions based on signals generated by the Model. Following the Model, the portfolio manager will generally buy investments during upward trends in the price of securities and sell investments or take short positions during downward trends in the price of securities. The portfolio manager also actively employs the use of cash and cash equivalents as a strategic asset class in an attempt to both sidestep market declines as well as lower overall portfolio volatility. During adverse market, economic or political conditions, as defined by the portfolio manager, the portfolio manager may deviate from the Model, including investing up to 100% of the portfolio in cash, cash equivalents, short-term debt securities and/or money market instruments, moving from a long exposure to a short exposure or from a short exposure to a long exposure in the various asset classes, when they feel doing so will help the Fund achieve its objectives of long-term capital appreciation or capital preservation. The sub-adviser may also adjust the Model from time-to-time to change the component constituents of the Model or in an attempt to improve the Model&#8217;s ability to implement a trend-following strategy. The Fund is not intended to be a complete investment program.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objectives, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/><b>Currency Risk </b>is the risk that fluctuations in exchange rates will adversely affect the value of the Fund&#8217;s foreign currency holdings and investments denominated in foreign currencies.<br/><br/><b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company. A Fund&#8217;s investments in certain commodities-linked ETFs may be limited by tax considerations, including the Fund&#8217;s intention to qualify annually as a regulated investment company (&#8220;RIC&#8221;) under the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;). See &#8220;Taxation&#8221; below.<br/><br/><b>Exchange-Traded Notes Risk</b> is the risk that ETNs in which the Fund may invest are subject to credit risk and the value of an ETN may vary and may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or other related markets, changes in the applicable interest rates, changes in the issuer&#8217;s credit rating, and economic, legal, political, or geographic events. ETNs are debt securities whose returns are linked to a particular index. The Fund will bear its proportionate share of any fees and expenses borne by the ETN. A Fund&#8217;s investments in certain commodities-linked ETNs may be limited by tax considerations, including the Fund&#8217;s intention to qualify annually as a RIC under the Code. See &#8220;Taxation&#8221; below.<br/><br/><b>Tax Status Risk</b> is the risk that the Fund&#8217;s ability to invest in certain commodity-related instruments, including in certain commodity-linked ETFs and ETNs, is or may be limited by the Fund&#8217;s intention to qualify as a RIC under the Code, and, if the Fund does not appropriately limit such investments or if such investments (or the income earned on such investments) were to be recharacterized for U.S. tax purposes, the Fund could fail to qualify as a RIC under one or more of the qualification tests applicable to RICs under the Code. If the Fund were to fail to qualify as a RIC in any taxable year, and were ineligible to or otherwise did not cure such failure, the Fund would be subject to tax on its taxable income at corporate rates, and all distributions from earnings and profits, including any distributions of net long-term capital gains, would be taxable to shareholders as dividend income. See &#8220;Taxation&#8221; below.<br/><br/><b>Foreign Investment Risk</b> is the risk that investing in foreign (non-U.S.) securities either directly or indirectly through investments in Underlying Funds may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Government Securities Risk</b> is the risk associated with U.S. Government obligations. U.S. Government obligations include securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, such as the U.S. Treasury. Payment of principal and interest on U.S. Government obligations may be backed by the full faith and credit of the U.S. or may be backed solely by the issuing or guaranteeing agency or instrumentality itself. There can be no assurance that the U.S. Government would provide financial support to its agencies or instrumentalities (including government-sponsored enterprises) where it is not obligated to do so.<br/><br/><b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/><b>Derivatives Risk </b> is the risk that an investment in derivatives, such as swaps, options and futures, may not correlate completely to the performance of the underlying securities or index and may be volatile, and may result in a loss greater than the principal amount invested. Equity derivatives may also be subject to liquidity risk, as well as the risk that the derivative is mispriced and that the value established for a derivative may be different than what would be produced through the use of another methodology or if it had been priced using market quotations.<br/><br/><b>Leverage Risk </b> is the risk associated with the use of leverage for investment purposes to create opportunities for greater total returns. Any investment income or gains earned with respect to the amounts borrowed that are in excess of the interest that is due on the borrowing will augment the Fund&#8217;s income. Conversely, if the investment performance with respect to the amounts borrowed fails to cover the interest on such borrowings, the value of the Fund&#8217;s shares may decrease more quickly than would otherwise be the case, and dividends on Fund shares could be reduced or eliminated. Interest payments and fees incurred in connection with such borrowings will reduce the amount of net income available for payment to Fund shareholders.<br/><br/><b>Mid-Cap Company Risk</b> is the risk of investing either directly or indirectly through investments in Underlying Funds in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br/><br/><b>Model Risk </b> is the risk that the Model used by the Fund to determine or guide investment decisions may not achieve the objectives of the Fund. Additionally, the portfolio manager of the Fund is able to adjust the Model or, under certain adverse conditions, to deviate from the Model employed by the Fund. Such adjustments or deviations may not achieve the objectives of the Fund and may produce lower returns and/or higher volatility compared to what the returns and volatility of the Fund would have been if the portfolio manager had not adjusted or deviated from the Model.<br/><br/><b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.<br/><br/><b>Portfolio Turnover Risk</b> is the risk that the Fund&#8217;s high portfolio turnover will increase its transaction costs and may result in increased realization of net short-term capital gains (which are taxable to shareholders as ordinary income when distributed to them), higher taxable distributions and lower after-tax performance.<br /><br /><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund either directly or indirectly through investments in Underlying Funds may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br /><br /><b>Short Sales Risk</b> is the risk of loss associated with any appreciation on the price of a security borrowed in connection with a short sale. The Fund may engage in short sales that are not made &#8220;against-the-box,&#8221; which means that the Fund may sell short securities even when they are not actually owned or otherwise covered at all times during the period the short position is open. Short sales that are not made &#8220;against-the-box&#8221; theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.<br /><br /><b>Small-Cap Company Risk</b> is the risk that investing in the securities of small-cap companies either directly or indirectly through investments in Underlying Funds may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br/><br/> <b>Underlying Funds Risk </b> is the risk that ETFs, mutual funds and closed-end funds in which the Fund may invest are subject to investment advisory and other expenses, which will be paid indirectly by the Fund and its shareholders. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs, mutual funds and closed-end funds and may be higher than other mutual funds that invest directly in stocks and bonds. The closed-end fund shares may differ from their net asset value. Underlying Funds are subject to specific risks, depending on the nature of the fund.<br /><br />An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its goal.The Fund was organized to acquire the assets and liabilities of the Incline Capital Trend Following Fund (the &#8220;Predecessor Fund&#8221;) in exchange for Class A Shares of the Fund. Accordingly, the Fund is the successor to the Predecessor Fund, and the following information was derived from the performance records of the Predecessor Fund through September 23, 2011. The Fund has substantially similar objectives, strategies and policies as the Predecessor Fund, which was advised by the Fund&#8217;s sub-adviser.<br/><br/>The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year since the Predecessor Fund&#8217;s inception and by showing how the average annual returns for the Fund&#8217;s Class A Shares compared to those of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. Class C, Class R and Class Y Shares of the Predecessor Fund were not offered, and Class C, Class R and Class Y Shares were not sold, prior to the date of this Prospectus. The returns of Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highland.com/Funds&#8212;Performance or by calling 1-877-665-1287.The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.Average Annual Total Returns<br/>(For the periods ended December 31, 2012)50000You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The contingent deferred sales charge (&#8220;CDSC&#8221;) on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter.8.48When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.<b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year since the Predecessor Fund&#8217;s inception and by showing how the average annual returns for the Fund&#8217;s Class A Shares compared to those of a broad-based securities market index.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.Class C, Class R and Class Y Shares of the Predecessor Fund were not offered, and Class C, Class R and Class Y Shares were not sold, prior to the date of this Prospectus. The returns of Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses.www.highland.com/Funds&#8212;Performance1-877-665-1287After-tax returns in the table above are shown for Class A Shares only and will differ for Class C, Class R and Class Y Shares.After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.2009-03-312009-03-312009-03-312009-03-31<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisTrendFollowingFund column period compact * ~</div>
Investment Objective<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisTrendFollowingFundBarChart column period compact * ~</div>
Long-term growth of capital and future income. (Future income means the ability to pay dividends in the future.)Fees and Expenses of the Fund0.057500000000.020.020.02Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 47% of the average value of its portfolio.0Principal Investment Strategies000.02-0.02-0.02-0.02-0.020.010.0120.0120.0120.0120.00350.010.00500.01050.01050.01050.01050.00020.00020.00020.00020.02620.03270.02770.0227-0.0125-0.0125-0.0125-0.0125Principal Risks0.01370.02020.01520.01020.05750000Long-term growth of capital.Fees and Expenses of the FundShareholder Fees (fees paid directly from your investment)Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)00000Expense Example-0.02-0.02-0.02-0.020000This Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.0Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 24% of the average value of its portfolio.Principal Investment Strategies050000-0.02-0.02-0.02-0.02-0.020.0575Principal Risks <br /><br />0000Performance00000Calendar Year Total ReturnsCalendar Year Total Returns00.0400245195The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.792The highest calendar quarter total return for Class A Shares of the Fund was 21.25% for the quarter ended June 30, 2009 and the lowest calendar quarter total return was -27.95% for the quarter ended December 31, 2008. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 13.56%.The highest calendar quarter total return for Class A Shares of the Fund was 16.72% for the quarter ended June 30, 2009 and the lowest calendar quarter total return was -21.47% for the quarter ended December 31, 2008. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 13.21%.000001244755603172012911037000003030275622430.00950.00950.00950.00950.00950.00250.010.010.00500.0080.0080.0080.0080.0080.020.02750.02250.02750.01750.010.057500000.00750.00750.00750.00750.00750.0100.01000.0050000.010.01240.01240.01240.012400.040.122700.00600.0060.0060.0060.0060.00250.010.00010.010.00010.0050.00010.00010000000.17510.12680.10530.04210.05480.030.05820.030.0250.020.13220.12880.11230.1320.14390.18220.00250.00250.00250.00250.00250.00010.00010.00010.00010.00010.01110.01860.01860.01360.00860.070.05790.06080.0860.13590.11680.13810.16350.025200.019200.019900.029700.029700.04050.03560.010.07360.06050.06050.07530.07180.08290.09722011-11-232011-11-152011-11-147662011-12-016783780.0042280.0041780.0047900.0047030.0044032532030.0870.0690.06830.08810.07410.05140.09440.07540.002511660.0110530.010.0058530551703123811279277796270.00610.00610.00610.00610.00611591145414540.00010.000112050.00010.00010.0001949276827360.012730800.0202258520620.02020.01520.010217111577157713311078301129823318283623272011-11-232011-11-23395904153832426972959041538955324212322021605834year-to-date total return2012-12-319080.006778510885854311978274305155104115110066344801006325745477108882956318491804218016351061234818131248682589289138880.23970.15110.09260.05750000<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisDividendEquityFund column period compact * ~</div>
0.12982050.0192634-0.377510880.30251978205<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisDividendEquityFundBarChart column period compact * ~</div>
000063401088234818918900.04000.26833033030.02935855859279270.135610061006180421800.020.020.020.020.020.23650.09070.020.03690.020.020.020.020.17310.09650.01-0.33220.254815770.11171577-0.01450.1321331829820.28090.06720.06230.05010.08320.11280.10460.13170.13010.13510.15990.20640.196-0.4353-0.02-0.02-0.02-0.02-0.020.26630.1133-0.13630.16280.13290.1320.08760.15350.18320.19950.20560.15990.15260.02140.01860.01720.02580.02580.03610.01660.03120.0080.0080.0080.0080.0080.0580.05240.04970.05950.05630.06690.0710.07520.00250.010.010.00500.00630.00630.00630.00630.00630.06520.05920.05640.06620.02430.04650.07190.06080.0510.01680.02430.02430.01930.0143-0.0042-0.0068-0.0040.00020.00020.01020.0166You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.500000.05830.05050.05020.05810.05660.06810.0710.07560.06160.06110.07590.02260.05250.02210.0806278278Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.8538530.2414541454When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.27363080An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance1-877-665-1287After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.0.0960.0960.06240.11380.14380.16140.15870.16130.1583In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.Highland Dividend Equity Fund<br/><br/><b>(formerly &#8220;Pyxis Dividend Equity Fund&#8221;)</b>Investment Objective-0.055-0.0573-0.0465-0.0509-0.0508To provide above average dividend yields with the potential for long-term capital appreciation.-0.0413-0.0116Fees and Expenses of the Fund-0.0118The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.Shareholder Fees (fees paid directly from your investment)<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisSmall-CapEquityFundBarChart column period compact * ~</div>
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)0.05680.05350.04990.05840.05610.06590.08110.0751Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the period November 14, 2011 (the date the Fund commenced operations) through September 30, 2012, the Fund had a portfolio turnover rate of 6% (not annualized) of the average value of its portfolio.Principal Investment StrategiesThe Fund seeks to achieve its investment objective under normal market conditions by investing, directly and indirectly (e.g., through investments in derivatives or other pooled investment vehicles), at least 80% of its net assets, plus any borrowings for investment purposes, in equity investments that pay or expect to pay dividends. The term &#8220;equity investments&#8221; refers to direct and indirect investments in common stocks, preferred stocks and convertible securities. The Fund may invest without limitation in equity investments tied economically to any country in the world, including emerging countries.<br/><br/>In addition to dividend-paying equity investments, the Fund may invest up to 20% of its assets, plus any borrowings for investment purposes, in a variety of other instruments including fixed income securities (including &#8220;junk bonds&#8221;), exchange-traded funds (&#8220;ETFs&#8221;), exchange-traded notes (&#8220;ETNs&#8221;), and warrants. The Fund may use derivatives, primarily swaps, options and futures, to an unlimited extent to hedge various investments for risk management and for speculative purposes. The Fund&#8217;s investments in derivatives and other types of pooled investment vehicles that invest in equity investments that pay or expect to pay dividends are intended to provide substantially similar economic exposure to direct investments in such dividend-paying equity investments.<br/><br/>The Fund seeks to invest in high-quality, income generating stocks that offer attractive valuations with below-market risk profiles. The Fund may invest in securities of any market capitalization.<br/><br/>In selecting investments for the Fund, Brookmont Capital Management, LLC (&#8220;Brookmont&#8221;), sub-adviser of the Fund, reviews macroeconomic data to determine the allocation of investments among various economic sectors. Brookmont seeks to avoid making large sector bets or focusing on individual issuers. Instead, investments are made in securities in all ten economic sectors defined by the S&amp;P 500 Index. Once the sector allocations are determined, Brookmont reviews the investment universe and selects investments based on factors such as dividend yield, the issuer&#8217;s debt level, projected cash flow, history of dividend increases, and earnings potential.<br/><br/>The Fund is non-diversified as defined in the Investment Company Act of 1940, as amended (the &#8220;1940 Act&#8221;). The Fund is not intended to be a complete investment program.0.0680.0541-0.02790.0150.04617360.0450.04596460.0542346196Principal Risks146When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/><b>Dividend-Paying Stock Risk </b>is the risk that companies that have paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the security held by the Fund or the Fund receiving less income. Additionally, a fund pursuing a dividend-oriented investment strategy may at times underperform other funds that invest more broadly or that have different investment styles.<br/><br/><b>Equity Securities Risk </b>is the risk that stock prices will fall over short or long periods of time. In addition, common stocks represent a share of ownership in a company, and rank after bonds and preferred stock in their claim on the company&#8217;s assets in the event of bankruptcy. The value of equity securities paying dividends at high rates may be more sensitive to changes in interest rates than are other equity securities.<br/><br/><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/><b>Mid-Cap Company Risk</b> is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br/><br/><b>Small-Cap Company Risk</b> is the risk that investing in the securities of small-cap companies either directly or indirectly through investments in ETFs, closed-end funds or mutual funds (&#8220;Underlying Funds&#8221;) may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br/><br/><b>Foreign Investment Risk</b> is the risk that investing in foreign (non-U.S.) securities either directly or indirectly may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Currency Risk</b> is the risk that fluctuations in exchange rates will adversely affect the value of the Funds foreign currency holdings and investments denominated in foreign currencies.<br/><br/><b>Derivatives Risk </b>is the risk that an investment in derivatives, such as swaps, options and futures, may not correlate completely to the performance of the underlying securities or index and may be volatile, and may result in a loss greater than the principal amount invested. Equity derivatives may also be subject to liquidity risk, as well as the risk that the derivative is mispriced and that the value established for a derivative may be different than what would be produced through the use of another methodology or if it had been priced using market quotations.<br/><br/><b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/><b>Exchange-Traded Notes Risk</b> is the risk that ETNs in which the Fund may invest are subject to credit risk and the value of an ETN may vary and may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or other related markets, changes in the applicable interest rates, changes in the issuer&#8217;s credit rating, and economic, legal, political, or geographic events. ETNs are debt securities whose returns are linked to a particular index. The Fund will bear its proportionate share of any fees and expenses borne by the ETN.<br/><br/><b>Counterparty Risk </b>is the risk that a counterparty (the other party to a transaction or an agreement or the party with whom the Fund executes transactions) to a transaction with the Fund may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise honor its obligations.<br/><br/><b>Hedging Risk</b> is the risk that, although intended to limit or reduce investment risk, hedging strategies may also limit or reduce the potential for profit. There is no assurance that hedging strategies will be successful.<br/><br/><b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/><b>High Yield Securities Risk </b>is the risk that high yield securities or unrated securities of similar credit quality (commonly known as &#8220;junk bonds&#8221;) are more likely to default than high rated securities. High Yield securities are regarded as speculative with respect to the issuer&#8217;s capacity to pay interest and repay principal. The market value of these securities is more sensitive to corporate developments and economic conditions and can be volatile. Market conditions can diminish liquidity and make accurate valuations difficult to obtain.<br/><br/><b>Management Risk </b>is the risk that the Adviser or Brookmont may be incorrect in its assessment of the intrinsic value of the securities the Fund holds which may result in a decline in the value of Fund shares and failure to achieve its investment objective. The Fund&#8217;s portfolio manager uses qualitative analyses and/or models. Any imperfections or limitations in such analyses and models could affect the ability of the portfolio managers to implement strategies.<br/><br/><b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.<br/><br/><b>Portfolio Turnover Risk</b> is the risk that the Fund&#8217;s high portfolio turnover will increase its transaction costs and may result in increased realization of net short-term capital gains (which are taxable to shareholders as ordinary income when distributed to them), higher taxable distributions and lower after-tax performance.<br/><br/>An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its goal.PerformanceThe bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877- 665-1287.1074958The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.Annual Total Returns758606452Average Annual Total Returns<br/>(For the periods ended December 31, 2012)The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The Fund seeks to achieve its investment objectives by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks, plus borrowing for investment purposes.<br/><br/>Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GE Asset Management Incorporated (&#8220;GEAM&#8221;), the Fund&#8217;s sub-adviser. The Fund invests primarily in a limited number of large- and medium-sized companies (meaning companies with a market capitalization of $2 billion or more) that the portfolio manager believes have above-average growth histories and/or growth potential. The portfolio manager selects equity securities from a number of industries based on the merits of individual companies. In seeking to satisfy the Fund&#8217;s investment objective with respect to future income, the portfolio manager will also consider companies that have the potential to pay dividends in the future. Stock selection is key to the performance of the Fund.<br/><br/>The portfolio manager seeks to identify securities of companies with characteristics such as:<ul type="square"><li style="margin-left:-20px"> above-average annual growth rates</li></ul><ul type="square"><li style="margin-left:-20px">financial strength (favorable debt ratios and other financial characteristics)</li></ul><ul type="square"><li style="margin-left:-20px">leadership in their respective industries</li></ul><ul type="square"><li style="margin-left:-20px">high quality management focused on generating shareholder value</li></ul>The portfolio manager may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified.<br/><br/>The Fund also may invest to a lesser extent in securities of foreign (non-U.S.) issuers and debt securities. The Fund may also invest in exchange-traded funds (&#8220;ETFs&#8221;), and it may use derivatives, primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes.1435129612961042When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/><b>Growth Investing Risk</b> is the risk of investing in growth stocks that may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company&#8217;s growth potential. Growth-oriented funds will typically underperform when value investing is in favor.<br/><br/><b>Mid-Cap Company Risk </b> is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br/><br/><b>Foreign Investment Risk</b> is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Currency Risk</b> is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br/><br/><b>Credit Risk</b> is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br/><br/><b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/><b>Exchange-Traded Funds Risk </b> is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/><b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology.<br/><br/>It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.1993-09-087821993-09-081993-09-081999-09-301998-01-052008-01-291993-08-31The highest calendar quarter total return for Class A Shares of the Fund was 6.74% for the quarter ended March 31, 2012 and the lowest calendar quarter total return was -0.90% for the quarter ended June 30, 2012. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 12.27%.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisSmall-CapEquityFund column period compact * ~</div>
244824112766Long-term growth of capital and future income rather than current income.22541713Fees and Expenses of the FundYou may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.0.042550000Shareholder Fees (fees paid directly from your investment)00Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)Other Expenses&#8221; are based on estimated amounts for the current fiscal year.Average Annual Total Returns <br/>(For the periods ended December 31, 2012)The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.<br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.Expense ExampleWhen you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.000This Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.<b>Non-Diversification Risk</b> is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund&#8217;s investment in fewer issuers may result in the Fund&#8217;s shares being more sensitive to the economic results of those issuers.An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 16% of the average value of its portfolio.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.Principal Investment StrategiesPrincipal Risks00As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.Calendar Year Total Returns0.011993-09-08www.highlandfunds.com/Funds&#8212;Performance1-877- 665-1287Highland Core America Equity Fund<br/><br/><b>(formerly &#8220;Pyxis Core America Equity Fund&#8221;)</b>After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.00After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.0Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Highland Funds II alternative funds, equity funds and/or asset allocation funds or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.highest calendar quarter total return050000002012-03-31<b>Shareholder Fees</b> (fees paid directly from your investment)<b>Annual Fund Operating Expenses</b> (expenses that you pay each year as a percentage of the value of your investment)0.0674lowest calendar quarter total return2012-06-30-0.0090.47246year-to-date total return2462012-12-31The Fund seeks to achieve its investment objectives by investing at least 80% of its net assets under normal circumstances in domestic equity securities, such as common and preferred stocks, plus borrowing for investment purposes.<br/><br/>Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GE Asset Management Incorporated (&#8220;GEAM&#8221;), the Fund&#8217;s sub-adviser. The Fund invests primarily in U.S. companies that the portfolio managers believe are undervalued by the market but have solid growth prospects. The portfolio managers employ a relative value approach to identify companies across all economic sectors which are undervalued relative to the market, their peers, their historical valuation or their growth rate. This approach results in a portfolio more broadly diversified across economic sectors and contrasts with other investing approaches that focus on low absolute valuations and often result in a portfolio concentrated in fewer sectors. A company may be undervalued for reasons such as market overreaction to recent company, industry or economic events. In seeking to satisfy the Fund&#8217;s investment objective with respect to future income, the portfolio managers will also consider companies that have the potential to pay dividends in the future. Stock selection is key to the performance of the Fund. <br/><br/>The portfolio managers seek to identify securities of companies with characteristics such as: <ul type="square"><li style="margin-left:-20px">low valuations in relation to their peers and the overall market</li><li style="margin-left:-20px">the potential for long-term earnings growth</li><li style="margin-left:-20px">above-average free cash flow yields</li><li style="margin-left:-20px">high quality management focused on generating shareholder value</li><li style="margin-left:-20px">financial strength (favorable debt ratios and other financial characteristics)</li><li style="margin-left:-20px">attractive upside potential and limited downside risk</li><li style="margin-left:-20px">a catalyst such as changing industry fundamentals, introduction of a new product, a company restructuring, or a change in management</li></ul>The portfolio managers may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified.<br/><br/>The Fund also may invest to a lesser extent in securities of foreign (non-U.S.) issuers and debt securities. The Fund may also invest in exchange-traded funds (&#8220;ETFs&#8221;), and it may use derivatives primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes.year-to-date total return0.12272012-12-31When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/><b>Value Investing Risk</b> is the risk of investing in undervalued stocks that may not realize their perceived value for extended periods of time or may never realize their perceived value. Value stocks may respond differently to market and other developments than other types of stocks. Value-oriented funds will typically underperform when growth investing is in favor.<br/><br/><b>Foreign Investment Risk</b> is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Currency Risk</b> is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br/><br/><b>Credit Risk</b> is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br/><br/><b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/><b>Exchange-Traded Funds Risk </b> is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/><b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology.<br/><br/>It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.7587580.1356Performancehighest calendar quarter total return129612962009-06-30The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.24112766As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.0.2125lowest calendar quarter total return2008-12-31-0.2795The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance1-877-665-1287Average Annual Total Returns<br/>(For the periods ended December 31, 2012)After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For Example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.<br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 the Fund&#8217;s Statement of Additional Information.500000.16Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of two broad-based securities market indices.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.0.0035After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.0.0035The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks, of small-cap companies, plus borrowing for investment purposes. <br /><br />The Fund uses an investment strategy that combines growth, value and core investment management styles. The Fund defines a small-cap company as one with a market capitalization that falls between (a) the bottom range of the Russell 2000<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> Index (&#8220;Russell 2000 Index&#8221;) and (b) the greater of either the top range of the Russell 2000 Index or $3.0 billion. As of May 31, 2012 the market capitalization of companies in the Russell 2000 Index ranged from $101 million to $2.61 billion.* The portfolio manager will not sell a stock merely because the market capitalization of a company in the portfolio moves outside its capitalization range or because the index capitalization range changes. Stock selection is key to the performance of the Fund.<br/><br/>The portfolio manager seeks to identify securities of companies with characteristics such as: <ul type="square"><li style="margin-left:-20px"> high quality management focused on generating shareholder value </li></ul><ul type="square"><li style="margin-left:-20px">attractive products or services</li></ul><ul type="square"><li style="margin-left:-20px">appropriate capital structure</li></ul><ul type="square"><li style="margin-left:-20px">strong competitive positions in their industries</li></ul>*&nbsp;&nbsp;The Russell 2000 Index is constructed to provide an unbiased small-cap barometer and is reconstituted annually. The capitalization range, however, may change significantly intra-year due to changes in the market capitalization of securities in the Index.<br/><br/>The portfolio manager may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified. <br /><br />The Fund also may invest to a lesser extent in securities with capitalizations outside the Fund&#8217;s small-cap range, debt securities and foreign (non-U.S.) securities. The portfolio manager may also invest in exchange-traded funds (&#8220;ETFs&#8221;) and it may invest in index futures, options on index futures and index options to gain exposure to certain types of securities as a substitute to investing directly in such securities. The Fund is not intended to be a complete investment program.0.0035Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For Example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/><b>Small-Cap Company Risk</b> is the risk that investing in the securities of small-cap companies may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br/><br/><b>Growth Investing Risk </b>is the risk of investing in growth stocks that may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company&#8217;s growth potential. Growth-oriented funds will typically underperform when value investing is in favor.<br /><br /><b>Value Investing Risk </b>is the risk of investing in undervalued stocks that may not realize their perceived value for extended periods of time or may never realize their perceived value. Value stocks may respond differently to market and other developments than other types of stocks. Value-oriented funds will typically underperform when growth investing is in favor.<br /><br /><b>Allocation Risk </b>is the risk that HCMFA may not allocate assets of the Fund among strategies or asset classes in an optimal manner, if, among other reasons, it does not correctly assess the attractiveness of a strategy or asset class.<br /><br /><b>Foreign Investment Risk </b>is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br /><br /><b>Currency Risk </b>is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br /><br /><b>Credit Risk </b>is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br /><br /><b>Interest Rate Risk </b>is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br /><br /><b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br /><br /><b>Derivatives Risk </b>is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology. <br /><br />It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.0.00250.0101993-02-281993-02-281993-11-290.30032008-01-291999-09-301993-12-221993-02-221993-02-221993-02-220.15340.18270.24110.22820.00580.00580.0058-0.49920.29520.04230.0118-0.17460.01930.00930.1864year-to-date total return2012-12-310.1321highest calendar quarter total return2009-06-300.1672lowest calendar quarter total return2008-12-31-0.214754029695highest calendar quarter total return2010-12-210.0823lowest calendar quarter total return2011-12-31-0.0826year-to-date total return296After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.<br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.2012-12-31606784Investment Objective-0.0514Maximum total return (total return includes both income and capital appreciation).10421046515179622541143Fees and Expenses of the FundShareholder Fees (fees paid directly from your investment)Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)0.11860.1197Expense Example0.0782This Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.0.18520.18970.17320.16840.1375Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 169% of the average value of its portfolio.Principal Investment Strategies-0.0726Principal Risks-0.0771-0.0687-0.0594196-0.0681-0.0591606-0.036910422254The contingent deferred sales charge (&#8220;CDSC&#8221;) on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter.Performance0.06370.05780.05970.06490.06270.08210.0726The highest calendar quarter total return for Class A Shares of the Fund was 12.15% for the quarter ended June 30, 2003 and the lowest calendar quarter total return was -16.91% for the quarter ended December 31, 2008. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 11.04%.0.03380.0261After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <br /><br />In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.<br /><br />0.02780.0347-0.04670.00850.00430.03990.00430.01150.04450.030.05090.0570.0391994-03-021994-03-020.0391994-03-020.03791994-03-020.04031999-09-302008-01-290.05061994-02-281994-03-020.06620.03280.03280.03290.02960.05460.08290.04280.04280.04250.03810.09440.0584highest calendar quarter total return1998-09-301998-09-301998-09-302009-06-301998-09-301999-09-302008-01-291998-09-300.2015lowest calendar quarter total return2008-12-31-0.273year-to-date total return2012-12-310.2022The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance1-877-665-1287After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.0.28320.06790.0110.08660.0498-0.3640.38530.11290.00050.20220.04140.0240.01140.03010.02670.00060.09420.0114Investment Objective0.08970.0485Highland Small-Cap Equity Fund<br/><br/><b>(formerly &#8220;Pyxis Small-Cap Equity Fund&#8221;)</b><div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisGlobalSelectEquityFundBarChart column period compact * ~</div>
Highland Global Select Equity Fund<br/><br/><b>(formerly &#8220;Pyxis Global Equity Fund&#8221;)</b>Investment ObjectiveLong-term growth of capital.Fees and Expenses of the FundShareholder Fees (fees paid directly from your investment)Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)highest calendar quarter total return2009-09-30When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br /><br /> <b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br /><br /> <b>Mid-Cap Company Risk </b> is the risk that investing in the securities of mid-cap companies could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br /><br /> <b>Small-Cap Company Risk</b> is the risk that investing in the securities of small-cap companies may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br/><br/> <b>Growth Investing Risk</b> is the risk of investing in growth stocks that may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company&#8217;s growth potential. Growth-oriented funds will typically underperform when value investing is in favor.<br/><br/> <b>Value Investing Risk</b> is the risk of investing in undervalued stocks that may not realize their perceived value for extended periods of time or may never realize their perceived value. Value stocks may respond differently to market and other developments than other types of stocks. Value-oriented funds will typically underperform when growth investing is in favor.<br/><br/> <b>Foreign Investment Risk</b> is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S., and investments may be less liquid. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/> <b>Currency Risk</b> is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br/><br/> <b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/> <b>Credit Risk</b> is the risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br/><br/> <b>Prepayment Risk </b>is the risk that during periods of falling interest rates, issuers of debt securities may repay higher rate securities before their maturity dates. This may cause the Fund to lose potential price appreciation and to be forced to reinvest the unanticipated proceeds at lower interest rates.<br/><br/> <b>Allocation Risk</b> is the risk that HCMFA may not allocate assets of the Fund among strategies or asset classes in an optimal manner, if, among other reasons, it does not correctly assess the attractiveness of a strategy or asset class.<br/><br/> <b>Valuation Risk</b> is the risk that the portfolio securities that have been valued using techniques other than market quotations, may have valuations that are different from those produced using other methodology, and that the security may be sold at a discount to the value established by the Fund.<br/><br/> <b>Illiquid and Restricted Securities Risk</b> is the risk that the Adviser may not be able to sell illiquid or restricted securities at the price it would like or may have to sell them at a loss. Securities of non-U.S. issuers, and emerging markets securities in particular, are subject to illiquidity risk.<br/><br/> <b>High Yield Securities Risk </b> is the risk that high yield securities or unrated securities of similar credit quality (commonly known as &#8220;junk bonds&#8221;) are more likely to default than higher rated securities. The market value of these securities is more sensitive to corporate developments and economic conditions and can be volatile. Market conditions can diminish liquidity and make accurate valuations difficult to obtain.<br/><br/> <b>Emerging Markets Risk </b> is the risk of investing in securities of companies located in emerging market countries, which primarily includes increased foreign investment risk. In addition, there are greater risks involved in investing in emerging markets, the economies of which tend to be more volatile than the economies of developed markets. <br/><br/> <b>REIT-Specific Risk </b> includes the risk that an investment in the stocks of real estate investment trusts (&#8220;REITs&#8221;) will decline because of adverse developments affecting the real estate industry and real property values. An investment in a REIT also may be adversely affected or lost if the REIT fails to qualify as a REIT for tax purposes.<br/><br/> <b>Real Estate Securities Risk </b>is the risk that an investment in real estate securities will be closely linked to the performance of the real estate markets. Property values or income may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments.<br/><br/> <b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/> <b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology. <br/><br/> It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.0.0516Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Highland International Equity Fund<br/><br/><b>(formerly &#8220;Pyxis International Equity Fund&#8221;)</b>Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 94% of the average value of its portfolio.Principal Investment StrategiesInvestment ObjectiveLong-term growth of capital.Fees and Expenses of the FundShareholder Fees (fees paid directly from your investment)Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 48% of the average value of its portfolio. <br /><br />Principal Investment Strategies0.05750000<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisCoreAmericaEquityFund column period compact * ~</div>
0000000.040000000<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisCoreAmericaEquityFundBarChart column period compact * ~</div>
0000The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks, plus borrowings for investment purposes. <br/><br/>Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GE Asset Management Incorporated (&#8220;GEAM&#8221;), the Fund&#8217;s sub-adviser. The Fund invests in companies in both developed and emerging market countries, including the United States, but will invest at least 25% of its total assets in non-U.S. issuers. The portfolio manager focuses on companies that are expected to grow faster than their relevant peers/markets and whose security prices do not fully reflect their potential for growth. When valuations are low, the portfolio managers may also invest in companies that are not expected to grow faster than their relevant peers/markets. Under normal circumstances, the Fund&#8217;s assets are invested primarily in countries included in the Morgan Stanley Capital International<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">SM</sup> (MSCI<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup>) All Country World Index (&#8220;MSCI<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> World Index&#8221;) and in no fewer than three different countries (not including the United States). As of December 31, 2012, U.S. companies represented 45% of the MSCI<sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">&#174;</sup> All Country World Index, but the portion of the Fund&#8217;s portfolio represented by U.S. companies may vary materially from that level. Stock selection is key to the performance of the Fund. <br/><br/>The portfolio managers seek to identify securities of growth companies with the following characteristics: <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;low prices relative to their long-term cash earnings potential </li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;potential for significant improvement in the company&#8217;s business</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;financial strength (favorable debt ratios and other financial characteristics)</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;sufficient liquidity</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp; emerging markets exposure</li></ul>The portfolio manager may consider selling a security when one or more of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified. The Fund may invest in securities of issuers of any market capitalization and in any industry or sector. <br/><br/>The Fund also may invest in pooled investment vehicles, including ETFs, and it may use derivatives, primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes. <br/><br/>The Fund may invest to a lesser extent in debt securities of any kind, including debt securities of varying maturities, debt securities paying a fixed or fluctuating rate of interest, inflation-indexed bonds, structured notes, loan assignments, loan participations, debt securities, convertible into equity securities and securities issued or guaranteed by the U.S. Government.<br/><br/> Although the Fund is classified as a &#8220;diversified&#8221; fund under the Investment Company Act of 1940, as amended (the &#8220;1940 Act&#8221;), the Fund will typically invest in approximately 30-50 different issuers, resulting in a more concentrated portfolio than a more widely diversified Fund. The Fund is not intended to be a complete investment program.01996-12-311996-12-311996-12-311996-12-311999-09-302008-01-291996-12-311996-12-311996-12-31PerformanceCalendar Year Total ReturnsThe bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The highest calendar quarter total return for Class A Shares of the Fund was 25.15% for the quarter ended June 30, 2009 and the lowest calendar quarter total return was -23.59% for the quarter ended September 30, 2011. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 18.64%.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/><b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/><b>Foreign Investment Risk</b> is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S., and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Currency Risk</b> is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br/><br/><b>Growth Investing Risk</b> is the risk of investing in growth stocks that may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company&#8217;s growth potential. Growth-oriented funds will typically underperform when value investing is in favor.<br/><br/><b>Focused Investment Risk</b> is the risk of investing in securities of a limited number of issuers in an effort to achieve a potentially greater investment return than a fund that invests in a larger number of issuers. While the Fund is classified as a &#8220;diversified&#8221; fund under the 1940 Act, the limited number of issuers in which the Fund will invest means that price movements of a single issuer&#8217;s securities will possibly have a greater impact on the Fund&#8217;s net asset value. As a result, the Fund&#8217;s value may fluctuate more than that of a more widely diversified fund.<br/><br/><b>Mid-Cap Company Risk </b> is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br/><br/><b>Emerging Markets Risk</b> is the risk of investing in securities of companies located in emerging market countries, which primarily includes increased foreign investment risk. In addition, there are greater risks involved in investing in emerging markets, the economies of which tend to be more volatile than the economies of developed markets.<br/><br/><b>Credit Risk</b> is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br/><br/><b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/><b>Exchange-Traded Funds Risk</b> is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/><b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology. <br/><br/>It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Principal RisksThe Fund seeks to achieve its investment objective by investing primarily in a combination of U.S. and foreign equity and debt securities and cash. The Fund&#8217;s asset allocation process utilizes information from the Fund&#8217;s sub-adviser, GE Asset Management Incorporated (&#8220;GEAM&#8221;), to diversify holdings across these asset classes. The Fund adjusts its weightings based on market and economic conditions to meet its objectives. The Fund may also invest in various types of derivatives to gain exposure to certain types of securities as an alternative to investing directly in such securities, to manage currency exposure and interest rate exposure (also known as duration), and to manage exposure to credit quality. <br/><br/>Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GEAM, the Fund&#8217;s sub-adviser. The Fund invests in equity securities, such as common and preferred stocks, principally for their capital appreciation potential and investment-grade debt securities principally for their income potential. The Fund invests in cash principally for the preservation of capital, income potential or maintenance of liquidity. Within each asset class, the portfolio managers primarily use active security selection to choose securities based on the perceived merits of individual issuers, although portfolio managers of different asset classes or strategies may place different emphasis on the various characteristics of a company (as identified below) during the selection process.<br/><br/> The portfolio managers seek to identify equity securities of companies with characteristics such as: <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;strong earnings growth</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp; favorable valuation</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp; a presence in successful industries</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;high quality management focused on generating shareholder value</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp; large or medium capitalization (meaning a market capitalization of $2 billion or more)</li></ul>The portfolio managers seek to identify debt securities with characteristics such as: <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;attractive yields and prices</li></ul><ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;the potential for capital appreciation</li></ul><ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;reasonable credit quality (typically investment grade debt securities, such as mortgage-backed securities, corporate bonds, U.S. Government securities and money market instruments)</li></ul>The portfolio managers may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified. <br/><br/>The portion of the Fund invested in debt securities normally has a weighted average maturity of approximately five to ten years, but is subject to no limitation with respect to the maturities of the instruments in which it may invest.<br/><br/> The Fund may also invest to a lesser extent in high yield securities (also known as &#8220;junk bonds&#8221;), equity and debt securities of companies that are located in emerging market countries, and exchange -traded funds (&#8220;ETFs&#8221;) to gain exposure to securities including those of U.S. issuers that are principally engaged in or related to the real estate industry.PerformanceWhen you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/> <b>Municipal Obligations Risk</b> is the risk of investing in municipal securities, and includes interest rate risk and the credit risk of the issuers of municipal securities. The municipal securities market is volatile and may be significantly affected by adverse tax, legislative or political changes. To the extent that the Fund remains relatively small, it may have fewer favorable investment opportunities.<br/><br/> <b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/> <b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br/><br/> <b>Credit Risk</b> is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br/><br/> <b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/> <b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology.<br/><br/> It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Calendar Year Total ReturnsThe bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The highest calendar quarter total return for Class A Shares of the Fund was 19.72% for the quarter ended June 30, 2009 and the lowest calendar quarter total return was -24.38% for the quarter ended December 31, 2008. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 16.28%.The Fund seeks to achieve its investment objective by investing primarily in investment-grade municipal obligations. Under normal circumstances, the portfolio manager manages the Fund so that at least 80% of the Fund&#8217;s income is exempt from both regular federal income taxes and the federal alternative minimum tax.<br/><br/> Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GE Asset Management Incorporated (&#8220;GEAM&#8221;), the Fund&#8217;s sub-adviser. The Fund generally will have an effective duration of 75% to 125% of the duration of the Barclays Capital 10-Year Municipal Bond Index. As of December 31, 2012, the effective duration of the Barclays Capital 10-Year Municipal Bond Index was 5.88 years. Portfolio duration is one measure of risk, as noted under &#8220;Interest Rate Risk&#8221; below.<br/><br/> The portfolio manager seeks to identify municipal obligations with characteristics such as: <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;attractive yields and prices</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;the potential for income generation</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp; the potential for capital appreciation</li></ul> <ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;reasonable credit quality</li></ul> The portfolio manager may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified.<br/><br/> The Fund also may invest to a lesser extent in tax-free or taxable money market instruments and may hold cash. The portfolio manager may also invest in various types of derivatives to manage interest rate exposure (also known as duration) and to manage exposure to credit quality. The Fund may also invest in exchange-traded funds (&#8220;ETFs&#8221;).<br/><br/>The Fund&#8217;s policy that at least 80% of its income be exempt from both regular federal income taxes and the federal alternative minimum tax may only be changed with shareholder approval.0.005Average Annual Total Returns<br/>(For the periods ended December 31, 2012)0.0050.0050.0050.0050.00250.010.01lowest calendar quarter total return0.00502010-12-31-0.0417year-to-date total return0.012012-12-310.04850.01070.0107Investment Objective0.0107As high a level of income exempt from federal income taxation as is consistent with preservation of capital.0.01070.0107Fees and Expenses of the Fund751Shareholder Fees (fees paid directly from your investment)6623620.00020.00020.00020.00020.0002162Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)Expense Example0.0184This Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.11200.02591005Portfolio Turnover8050.0259The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 26% of the average value of its portfolio.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisTax-ExemptFundBarChart column period compact * ~</div>
502Principal Investment Strategies0.02090.0159Principal Risks<b>Performance </b>151313751375866After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <br/><br/> In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.Calendar Year Total ReturnsThe bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The highest calendar quarter total return for Class A Shares of the Fund was 5.16% for the quarter ended September 30, 2009 and the lowest calendar quarter total return was -4.17% for the quarter ended December 31, 2010. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 4.85%.Average Annual Total Returns <br/>(For the periods ended December 31, 2012)When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br /><br /> <b>Securities Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br /><br /> <b>Foreign Investment Risk</b> is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S., and investments may be less liquid. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br /><br /> <b>Currency Risk</b> is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br /><br /> <b>Growth Investing Risk</b> is the risk of investing in growth stocks that may be more volatile than other stocks because they are more sensitive to investor perceptions of the issuing company&#8217;s growth potential. Growth-oriented funds will typically underperform when value investing is in favor.<br /><br /> <b>Mid-Cap Company Risk </b> is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br /><br /> <b>Emerging Markets Risk</b> is the risk of investing in securities of companies located in emerging market countries, which primarily includes increased foreign investment risk. In addition, there are greater risks involved in investing in emerging markets, the economies of which tend to be more volatile than the economies of developed markets.<br /><br /> <b>Credit Risk</b> is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br /><br /> <b>Interest Rate Risk</b> is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br /><br /> <b>Exchange-Traded Funds Risk </b> is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br /><br /> <b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology. <br/><br/> It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in equity securities, such as common and preferred stocks, plus borrowings for investment purposes. <br /><br /> Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GE Asset Management Incorporated (&#8220;GEAM&#8221;), the Fund&#8217;s sub-adviser. The Fund invests primarily (meaning at least 65%) in companies in both developed and emerging market countries outside the U.S. An issuer is considered to be located outside the U.S. if at least 50% of its revenues or profits are from business activities located outside the U.S., at least 50% of its assets are located outside the U.S., or the principal trading market for its securities is located outside the U.S. The portfolio managers focus on companies whose security prices they believe do not fully reflect their potential for growth. Under normal circumstances, the Fund&#8217;s assets are invested in securities of foreign (non-U.S.) companies representing at least three different countries. Stock selection is key to the performance of the Fund.<br/><br/> The portfolio managers seek to identify securities of companies with characteristics such as:<ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;low valuation relative to their long term cash earnings potential </li></ul><ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;potential for significant improvement in the company&#8217;s business</li></ul><ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;financial strength (favorable debt ratios and other financial characteristics)</li></ul><ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;sufficient liquidity</li></ul><ul type="square"><li style="margin-left: -20px">&nbsp;&nbsp;&nbsp;large or medium capitalization (meaning a market capitalization of $2 billion or more)</li></ul> The portfolio managers may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified. <br/><br/> The Fund also may invest to a lesser extent in debt securities and may invest in securities of companies located in the U.S. The Fund may also invest in exchange-traded funds (&#8220;ETFs&#8221;), and it may use derivatives, primarily swaps, options and futures contracts, as substitutes for securities in which the Fund can invest. The Fund may also use derivatives to an unlimited extent to hedge various investments for risk management and speculative purposes.Average Annual Total Returns<br/>(For the periods ended December 31, 2012)After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.<br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.Highland Premier Growth Equity Fund<br/><br/><b>(formerly &#8220;Pyxis Premier Growth Equity Fund&#8221;)</b>You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.50000<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisTax-ExemptFund column period compact * ~</div>
0.94When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandsfunds.com/Funds&#8212;Performance1-877-665-1287After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.2609257529251889year-to-date total return2012-12-310.1628highest calendar quarter total return2009-06-300.1972lowest calendar quarter total return2008-12-31-0.2438<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisPremierGrowthEquityFund column period compact * ~</div>
0.48Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.50000When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.1-877-665-1287www.highlandsfunds.com/Funds&#8212;PerformanceAs with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsPyxisPremierGrowthEquityFundBarChart column period compact * ~</div>
The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor's tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.year-to-date total return2012-12-310.1864highest calendar quarter total return2009-06-300.25152011-09-30-0.2359lowest calendar quarter total returnYou may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in the Fund or in other Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.50000262262Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.8058050.26When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.1375An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.1375The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.2575As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.2925The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance0.06<div style="display:none">~ http://www.pyxisais.com/role/ScheduleShareholderFeesPyxisInternationalEquityFund column period compact * ~</div>
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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisInternationalEquityFund column period compact * ~</div>
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000000000.04000.04640.04480.03230.06230.09190.11340.15990.0422After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.<br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.-0.0143-0.0186-0.0133-0.01-0.01-0.00020.01660.05951993-09-081993-09-081993-09-081999-09-301997-09-261993-08-310.0025After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.0.01240.00010.0225<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedPyxisGlobalSelectEquityFund column period compact * ~</div>
0.04780.03950.03980.04630.05730.0710.0518Principal Risks <br /><br /><b>Performance</b>The highest calendar quarter total return for Class A Shares of the Fund was 20.15% for the quarter ended June 30, 2009 and the lowest calendar quarter total return was -27.30% for the quarter ended December 31, 2008. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 20.22%.Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.0Calendar Year Total ReturnsAverage Annual Total Returns<br/>(For the periods ended December 31, 2012)212655112424210.10771993-02-221993-02-221993-02-221993-12-221999-09-302008-01-291993-11-291993-02-281993-02-280.20620.07980.03560.13890.1156Investment Objective-0.3064Maximum income consistent with prudent investment management and the preservation of capital.0.2114Fees and Expenses of the Fund0.096-0.03450.1104highest calendar quarter total return2003-06-300.1215lowest calendar quarter total return2008-12-31-0.1691The bar chart shows the performance of the Fund's Class A shares as of December 31.After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in the Fund or in other Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.50000Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.1.69When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of two broad-based securities market indices.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance1-877-665-1287After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.0.042500000000000.030000000000000.0030.0030.0030.0030.0030.00250.010.010.00500.00540.00540.00540.00540.00540.00030.00030.00030.00030.00030.01120.01870.01870.01370.0087<div style="display:none">~ http://www.pyxisais.com/role/ScheduleShareholderFeesPyxisFixedIncomeFund column period compact * ~</div>
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Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the most recent fiscal year, the Fund&#8217;s portfolio turnover rate was 350% of the average value of its portfolio.Principal Investment StrategiesPrincipal RisksPerformanceCalendar Year Total ReturnsThe bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The highest calendar quarter total return for Class A Shares of the Fund was 4.37% for the quarter ended September 30, 2009 and the lowest calendar quarter total return was -2.56% for the quarter ended June 30, 2004. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 4.58%.Average Annual Total Returns<br/>(For the periods ended December 31, 2012)After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <br /><br />In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.<br /><br />0.06540.05330.05260.06450.03280.00740.07030.08160.062<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleTransposedPyxisFixedIncomeFund column period compact * ~</div>
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When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br /><br /><b>Securities Market Risk </b>is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br /><br /><b>Interest Rate Risk </b>is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration.<br /><br /><b>Credit Risk </b>is the risk that the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br /><br /><b>Prepayment Risk </b>is the risk that during periods of falling interest rates, issuers of debt securities may repay higher rate securities before their maturity dates. This may cause the Fund to lose potential price appreciation and to be forced to reinvest the unanticipated proceeds at lower interest rates.<br /><br /><b>Mortgaged-Backed Securities Risk </b>is the risk of investing in mortgaged-backed securities, and includes interest rate risk, prepayment risk and the risk that the Fund could lose money if there are defaults on the mortgage loans underlying these securities.<br /><br /><b>Foreign Investment Risk </b>is the risk that investing in securities of foreign (non-U.S.) issuers may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br /><br /><b>Currency Risk </b>is the risk that the dollar value of foreign investments will change in response to changes in currency exchange rates. If a foreign currency weakens against the U.S. dollar, the U.S. dollar value of an investment denominated in that currency would also decline.<br /><br /><b>High Yield Securities Risk </b>is the risk that high yield securities or unrated securities of similar credit quality (commonly known as &#8220;junk bonds&#8221;) are more likely to default than higher rated securities. The market value of these securities is more sensitive to corporate developments and economic conditions and can be volatile. Market conditions can diminish liquidity and make accurate valuations difficult to obtain.<br /><br /><b>Asset-Backed Securities Risk</b> is the risk of investing in asset-backed securities, and includes interest rate risk, prepayment risk and the risk that the Fund could lose money if there are defaults on the loans underlying these securities.<br /><br /><b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund&#8217;s expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br /><br /><b>Derivatives Risk</b> is a combination of several risks, including the risks that: (1) an investment in a derivative instrument will not correlate well with the performance of the securities or asset class to which the Fund seeks exposure, (2) a derivative instrument entailing leverage may result in a loss greater than the principal amount invested, and (3) derivatives not traded on an exchange may be subject to credit risk, as well as liquidity risk and the related risk that the instrument is difficult or impossible to value accurately. For example, the methodology the Fund uses to establish the fair value of a derivative may result in a value materially different from the value obtained using an alternative methodology. <br /><br />It is possible to lose money on an investment in the Fund, and this risk of loss may be heightened if you hold shares of the Fund for a shorter period. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.0.0010.0016-0.00440.00830.02820.04290.04850.04220.04140.02960.02830.04270.04260.05270.05950.03930.02510.02510.03910.03620.04630.05180.05160.03280.03240.05130.04540.04490.05610.062The Fund seeks to achieve its investment objective by investing at least 80% of its net assets under normal circumstances in debt securities.<br/><br/>Highland Capital Management Fund Advisors, L.P. (&#8220;HCMFA&#8221;), the Fund&#8217;s investment adviser, has allocated all the assets of the Fund to be managed/advised by GE Asset Management Incorporated (&#8220;GEAM&#8221;), the Fund&#8217;s sub-adviser. The Fund invests primarily in a variety of investment-grade debt securities, such as mortgage-backed securities, corporate bonds, U.S. Government securities and money market instruments. The Fund normally has a weighted average maturity of approximately five to ten years, but is subject to no limitation with respect to the maturities of the instruments in which it may invest. <br/><br/>U.S. Government securities are securities that are issued or guaranteed as to principal and interest by the U.S. Government or one of its agencies or instrumentalities. Some U.S. Government securities are backed by the full faith and credit of the U.S. Government, such as U.S. Treasury bills and notes and obligations of the Government National Mortgage Association (Ginnie Mae). Other U.S. Government securities are backed by the issuer&#8217;s right to borrow from the U.S. Treasury, such as Federal National Mortgage Association (Fannie Mae) securities, while some are backed only by the credit of the issuing organization, such as obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac). <br/><br/>The portfolio managers seek to identify debt securities with characteristics such as: <ul type="square"><li style="margin-left: -20px"> attractive yields and prices</li></ul><ul type="square"><li style="margin-left: -20px"> the potential for capital appreciation</li></ul><ul type="square"><li style="margin-left: -20px">reasonable credit quality</li></ul>The portfolio managers may consider selling a security when one of these characteristics no longer applies, or when valuation becomes excessive and more attractive alternatives are identified. <br /><br />The Fund also may invest to a lesser extent in asset-backed securities, high yield securities (also known as &#8220;junk bonds&#8221;), foreign (non-U.S.) debt securities and equity securities, such as exchange-traded funds (&#8220;ETFs&#8221;). <br /><br />The portfolio managers may also invest in various types of derivatives to manage interest rate risk (also known as duration) and to manage exposure to credit quality.Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)0.01The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.Investment Objective3.550000Class C shares are subject to a 1% contingent deferred sales charge (&#8220;CDSC&#8221;) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.www.highlandfunds.com/Funds&#8212;Performance1-877-665-1287After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAverageAnnualTotalReturnsTransposedPyxisFixedIncomeFund column period compact * ~</div>
Highland Fixed Income Fund<br/><br/><b>(formerly &#8220;Pyxis Fixed Income Fund&#8221;)</b>1993-02-221993-02-221993-02-221993-12-221999-09-302008-01-291993-11-291993-02-28You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in the Fund or in other Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.highest calendar quarter total return2009-09-300.0437lowest calendar quarter total return2004-06-30-0.0256year-to-date total return2012-12-310.0458The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of two broad-based securities market indices. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.year-to-date total return2012-12-310.110410.81473142223774787573142223774787Average Annual Total Returns<br/>(For the periods ended December 31, 2012)Shareholder Fees (fees paid directly from your investment)1998-09-300000000.04000.01HIGHLAND FUNDS IIHighland Alternative Income Fund<br/><br/><b>(formerly &#8220;Pyxis Alternative Income Fund&#8221;)</b>2013-02-11Other2013-02-11The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund or in other Highland Funds II alternative funds, equity funds and/or asset allocation funds or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 the Fund&#8217;s Statement of Additional Information.0.0575000<div style="display:none">~ http://www.pyxisais.com/role/ScheduleShareholderFeesHighlandEnergyMLPFund column period compact * ~</div><div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualFundOperatingExpensesHighlandEnergyMLPFund column period compact * ~</div><div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleTransposedHighlandEnergyMLPFund column period compact * ~</div><div style="display:none">~ http://www.pyxisais.com/role/ScheduleAverageAnnualTotalReturnsTransposedHighlandEnergyMLPFund column period compact * ~</div>The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of two broad-based securities market indices. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.Highland Energy MLP Fund<br/><br/>(Formerly Pyxis Energy MLP Fund)Investment ObjectiveThe investment objective of Highland Energy MLP Fund (the &#8220;Fund&#8221;) is to provide investors with current income and capital appreciation.Fees and Expenses of the FundThe following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 31 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 34 of the Fund&#8217;s Statement of Additional Information.You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in the &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 31 of the Fund&#8217;s Prospectus and the &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 34 of the Fund&#8217;s Statement of Additional Information.50000Shareholder Fees (fees paid directly from your investment)00000.020.020.020.02Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)00.01000.0120.0120.0120.0120.00350.010.00500.02450.02450.02450.02450.0010.0010.0010.0010.0410.04750.04250.03750.01550.0220.0170.012-0.0255-0.0255-0.0255The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.-0.0255The contingent deferred sales charge (&#8220;CDSC&#8221;) on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter.&#8220;Other Expenses&#8221; are based on estimated amounts for the current fiscal year.January 31, 2014Expense ExampleThis Example helps you compare the cost of investing in the Fund to the cost of investing in other mutual funds. The Example assumes that (i) you invest $10,000 in the Fund for the time periods indicated and then sell or redeem all your shares at the end of those periods, (ii) your investment has a 5% return each year, and (iii) operating expenses remain the same. Your actual costs may be higher or lower.963576427377The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.1750143012891146255123902165193446184810441339934761430The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandsfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.23904810Portfolio TurnoverThe Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may increase the tax liability of the Fund. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Expense Example, affect the Fund&#8217;s performance. During the period December 1, 2011 (the date the Fund commenced operations) through September 30, 2012, the Fund had a portfolio turnover rate of 254% (not annualized) of the average value of its portfolio.2.54Effective February 1, 2013, the Fund revised its investment strategy to focus on master limited partnership ("MLP") investments. Under normal market conditions, the Fund seeks to achieve its objective by investing at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of MLP investments. MLPs typically are characterized as "publicly traded partnerships" that qualify to be treated as partnerships for U.S. federal income tax purposes and are principally engaged in one or more aspects of the exploration, production, processing, transmission, marketing, storage or delivery of energy-related commodities, such as natural gas, natural gas liquids, coal, crude oil or refined petroleum products (collectively, the energy industry). The Fund's MLP investments include investments that offer economic exposure to public MLPs in the form of common or subordinated units issued by MLPs, securities of entities holding primarily general partner or managing member interests in MLPs, debt securities of MLPs, and securities that are derivatives of interests in MLPs, including I-Shares, and derivative instruments in which the Fund may invest that have economic characteristics of MLP securities. Certain of the benefits Fund shareholders are expected to derive from the Fund's MLP investments depend largely on the MLPs' treatment as partnerships for U.S. federal income tax purposes. See "MLP Tax Risk" below for additional details.<br/><br/>After the Fund implements its revised strategy to concentrate in MLP investments, retroactive to the beginning of the Fund's current taxable year, which began on October 1, 2012 and ends on September 30, 2013, and continuing for future taxable years, the Fund will no longer be eligible for treatment as a regulated investment company under the Internal Revenue Code of 1986, as amended (the "Code"). Accordingly, the Fund will be treated as a regular corporation, or "C" corporation, for U.S. federal income tax purposes. As a result, the Fund will be subject to U.S. federal income tax on its taxable income at the graduated rates applicable to corporations (currently at a maximum rate of 35%) as well as state and local income taxes. However, based on a review of the historic results of the types of MLPs in which the Fund intends to invest, Highland Capital Management, L.P. ("HCM"), sub-adviser of the Fund, currently expects that, at least in the early years of the Fund's life, the cash distributions it receives with respect to its investments in equity securities of MLPs will typically exceed the net taxable income allocated to the Fund from such MLPs, due to a variety of factors, including significant non-cash deductions such as depreciation and depletion. Any such excess in a taxable year will not be treated as income to the Fund, but rather will be treated as a tax-deferred return of capital to the Fund for U.S. federal income tax purposes, to the extent of the Fund's basis in the MLP securities. Distributions the Fund receives from a MLP that exceed the Fund's basis in the securities of that MLP are treated as taxable income or gains in the Fund's hands. Thus, HCM expects that the Fund would experience relatively more tax deferral (and thus lower corporate income tax expense) during the early years of the Fund's operations than during its later years. See "Taxation" in this Prospectus and "Fund-Related Tax Risks: C Corporation Structure Tax Risks" below for additional details, including information on distributions, redemptions and the tax consequences of C corporation status. <br/><br/>In addition, the Fund may invest up to 20% of the value of its total assets in a wide variety of securities and financial instruments, of all kinds and descriptions, that are not MLP investments, such as equity securities, equity-linked securities, fixed income securities (including "junk bonds"), and money market securities. The Fund may invest without limitation in Exchange Traded Funds ("ETFs") and may invest up to 20% of the value of its total assets in ETFs that do not provide exposure to MLPs. The Fund may invest in securities of issuers of any market capitalization. The Fund may invest in securities of any credit quality.<br/><br/>The Fund may invest in securities of non-U.S. issuers, which may include, without limitation, emerging market issuers. Such securities may be denominated in U.S. dollars, non-U.S. currencies or multinational currency units (such as the Euro). At times, the Fund intends to hedge currency exposure resulting from investments denominated in non U.S. currencies. <br/><br/>Derivatives, which are instruments that have a value based on another instrument, exchange rate or index, may be used as substitutes for securities in which the Fund can invest. The Fund may use derivatives, primarily options and foreign currency transactions (e.g., foreign currency swaps, futures, and forwards), as tools in the management of portfolio assets. The Fund may also use such derivatives to hedge various investments for risk management and for speculative purposes.<br/><br/> The Fund may borrow an amount up to 33 1/3% (or such other percentage permitted by law) of its total assets (including the amount borrowed) less all liabilities other than borrowings. The Fund may borrow for investment purposes, to meet redemption requests and for temporary, extraordinary or emergency purposes. The use of borrowing for investment purposes (i.e., leverage) increases both investment opportunity and investment risk. However, the Fund has no present intention to use borrowing for investment purposes. <br/><br/>The Fund's investment strategy utilizes the analytical models of HCM to evaluate potential investments. In selecting investments for the Fund, HCM typically focuses on MLP issuers that it believes: (i) have stable cash flows and pay regular distributions; (ii) have potential for long-term distribution growth; (iii) may be subject to a value catalyst, such as industry developments, regulatory changes, changes in management, acquisitions, sale or spin-off of a division; (iv) are well-managed; (v) will benefit from favorable demand and supply dynamics for its products and services; (vi) are best in class; and/or (vii) are underappreciated by market analysts. HCM will typically focus on companies that are exhibiting one or more of these indicators. Technical analysis may also be used to help in the decision making process.<br/><br/> HCM may sell short securities of a company that it believes: (i) is overvalued relative to normalized business and industry fundamentals or to the expected growth that HCM believes the company will achieve; (ii) has a weak competitive position relative to peers; (iii) engages in questionable accounting practices; (iv) shows declining cash flow and/or liquidity; (v) has distribution estimates that HCM believes are too high; (vi) has weak competitive barriers to entry; (vii) suffers from deteriorating industry and/or business fundamentals; (viii) has a weak management team; (ix) will see multiple contraction; (x) is not adapting to changes in technological, regulatory or competitive environments; or (xi) provides a hedge against the Fund's long exposure, such as a broad based market ETF. Technical analysis may be used to help in the decision making process. The Fund may engage in short sales that are not made "against-the-box," which means that the Fund may sell short securities even when they are not actually owned or offset at all times during the period the short position is open. Short sales that are not made "against-the-box" could result in unlimited loss.<br/><br/> HCM generates investment ideas from a variety of different sources. These include, but are not limited to, screening software that analyzes both fundamental and technical factors, industry contacts, consultants, company press releases, company conference calls, conversations with company management teams, buy-side contacts, sell-side contacts, brokers, third-party research, independent research of financial and corporate information, third-party research databases, and news services. HCM will make investment decisions based on its analysis of the security's value, and will also take into account its view of macroeconomic conditions and industry trends. HCM will make investments without regard to a company's level of capitalization. HCM is an affiliated of the Adviser.<br/><br/> The Fund is non-diversified as defined in the Investment Company Act of 1940, as amended, (the "1940 Act"). The Fund is not intended to be a complete investment program.The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in the Fund or in other Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.Under normal market conditions, the Fund seeks to achieve its objective by investing at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of MLP investments. MLPs typically are characterized as "publicly traded partnerships" that qualify to be treated as partnerships for U.S. federal income tax purposes and are principally engaged in one or more aspects of the exploration, production, processing, transmission, marketing, storage or delivery of energy-related commodities, such as natural gas, natural gas liquids, coal, crude oil or refined petroleum products (collectively, the energy industry).The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in the Fund or in other Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund. No assurance can be given that the Fund will achieve its investment objective, and investment results may vary substantially over time and from period to period. An investment in the Fund is not appropriate for all investors.<br/><br/> <b>Industry Concentration Risk </b>is the risk that the Fund may be particularly susceptible to economic, political or regulatory events affecting those industries in which the Fund focuses its investments. Because the Fund normally invests at least 80% of the value of its assets in MLP investments, the Fund's performance largely depends on the overall condition of these industries and the Fund is susceptible to economic, political and regulatory risks or other occurrences associated with these industries. <br/><br/><b>MLP Risk</b> is the risk of investing in MLP units, which involves some risks that differ from an investment in the equity securities of a company. The Fund intends to invest substantially in MLP units. Holders of MLP units have limited control and voting rights on matters affecting the partnership. Holders of units issued by a MLP are exposed to a remote possibility of liability for all of the obligations of that MLP in the event that a court determines that the rights of the holders of MLP units to vote to remove or replace the general partner of that MLP, to approve amendments to that MLP's partnership agreement, or to take other action under the partnership agreement of that MLP would constitute "control" of the business of that MLP, or a court or governmental agency determines that the MLP is conducting business in a state without complying with the partnership statute of that state. Holders of MLP units are also exposed to the risk that they will be required to repay amounts to the MLP that are wrongfully distributed to them. Investments in MLP units also present special tax risks. See "MLP Tax Risk" below. <br/><br/><b>MLP Tax Risk</b> is the risk that the MLPs in which the Fund invests will fail to be treated as partnerships for U.S. federal income tax purposes. The Fund's ability to meet its investment objective will depend, in large measure, on the level of dividends, distributions or income it receives from the MLPs in which it invests and on the MLPs' continued treatment as partnerships for U.S. federal income tax purposes. If a MLP does not meet current legal requirements to maintain its partnership status, or if it is unable to do so because of tax or other law changes, it would be treated as a corporation for U.S. federal income tax purposes. In that case, the MLP would be obligated to pay U.S. federal income tax (as well as state and local taxes) at the entity level on its taxable income and distributions received by the Fund would be taxable to the Fund as dividend income to the extent of the MLP's current and accumulated earnings and profits for federal tax purposes. The classification of a MLP as a corporation for U.S. federal income tax purposes could have the effect of reducing the amount of cash available for distribution by the MLP and the value of the Fund's investment in any such MLP. As a result, the value of the Fund's shares and the cash available for distribution to Fund shareholders could be materially reduced. <br/><br/><b>Fund-Related Tax Risks</b> are tax risks related to an investment in the Fund, including, but not limited to: <ul type="square"><li style="margin-left:-20px">C Corporation Structure Tax Risks. Unlike most mutual funds, the Fund will not be entitled to pass-through tax treatment as a regulated investment company. Instead, the Fund will be treated as a regular corporation, or "C" corporation, for U.S. federal income tax purposes. Accordingly, the Fund generally will be subject to U.S. federal income tax on its investment income and gains at the graduated rates applicable to corporations as well as state and local taxes. However, based on a review of the historic results of the types of MLPs in which the Fund intends to invest, HCM currently expects that, at least in the early years of the Fund's life, the cash distributions it receives with respect to its investments in equity securities of MLPs will typically exceed the taxable income allocated to the Fund from such MLPs, due to a variety of factors, including significant non-cash deductions such as depreciation and depletion. Any such excess in a taxable year will not be treated as income to the Fund, but rather will be treated as a tax-deferred return of capital to the Fund for U.S. federal income tax purposes, to the extent of the Fund's basis in the MLP securities. Distributions the Fund receives from a MLP that exceed the Fund's basis in the securities of that MLP are treated as taxable income or gains in the Fund's hands.<br/><br/>Thus, HCM expects that the Fund would experience relatively more tax deferral (and thus lower corporate income tax expense) during the early years of the Fund's operations than during its later years.<br/><br/>The Fund's receipt of return-of-capital distributions from MLPs also will cause the Fund's taxable income or gains to be higher, or losses to be lower, upon the ultimate sale of the MLP security by the Fund, and may cause taxable income or gains to be higher upon receipt of subsequent distributions from the MLP security by the Fund in later periods. The Fund's corporate income tax liability may be materially affected by, and may fluctuate materially from year to year depending on, a number of factors relating to the Fund and/or its MLP or other investments, including the length of time the Fund has owned the MLP equity securities in its portfolio and the extent to which the Fund disposes of MLP equity securities during a particular year, including, if necessary, to meet Fund shareholder redemption requests.<br/><br/> The Fund's tax liability will not be finally known until the Fund completes its annual tax return. The Fund's tax estimates could vary substantially from the actual liability and therefore the final determination of the Fund's actual tax liability may have a material impact on the Fund's net asset value. See "Calculation of NAV Risk" below. The payment of corporate income taxes imposed on the Fund will decrease the value of the Fund's shares and the amount of cash available for distribution to shareholders. <br/><br/>Due to the tax treatment of the Fund's allocations and distributions from MLPs, as described above, HCM currently expects that a significant portion of the Fund's distributions to shareholders will typically be treated as a return of capital in the hands of shareholders for U.S. federal income tax purposes (i.e., as distributions in excess of the Fund's current and accumulated earnings and profits) and thus would not be subject U.S. federal income tax to the extent of the shareholder's basis in its Fund shares. However, no assurance can be given in this regard and the extent to which the Fund is able to make return of capital distributions can vary materially from year to year.</li></ul><ul type="square"><li style="margin-left:-20px">Calculation of NAV Risk. In calculating the Fund's daily net asset value in accordance with generally accepted accounting principles, the Fund will account for its deferred tax liability and/or asset balances. The Fund will accrue a deferred income tax liability balance, at the currently effective statutory U.S. federal income tax rate (currently at a maximum rate of 35%) plus an estimated state and local income tax rate, for its future tax liability associated with the capital appreciation of its investments and the distributions received by the Fund on equity securities of MLPs considered to be return of capital and for any net operating gains. Any deferred tax liability balance will reduce the Fund's net asset value. Upon the Fund's sale of a portfolio security, the Fund may be liable for previously deferred taxes. If the Fund is required to sell portfolio securities to meet redemption requests, the Fund may recognize income and gains for U.S. federal, state and local income tax purposes, which will result in corporate income taxes imposed on the Fund.</li></ul><ul type="square"><li style="margin-left:-20px">The Fund will accrue a deferred tax asset balance, which reflects an estimate of the Fund's future tax benefit associated with net operating losses, capital loss carryforwards and unrealized losses. Any deferred tax asset balance will increase the Fund's net asset value. To the extent the Fund has a deferred tax asset balance, the Fund will assess whether a valuation allowance, which would offset the value of some or all of the Fund's deferred tax asset balance, is required, considering all positive and negative evidence related to the realization of the Fund's deferred tax asset. The Fund intends to assess whether a valuation allowance is required to offset some or all of any deferred tax asset balance in connection with the calculation of the Fund's daily net asset value; however, to the extent the final valuation allowance differs from the estimates of the Fund used in calculating the Fund's daily net asset value, the application of such final valuation allowance could have a material impact on the Fund's net asset value. From time to time, the Fund may modify its estimates or assumptions regarding its deferred tax liability and/or asset balances as new information becomes available. Such modifications, changes in generally accepted accounting principles or related guidance or interpretations thereof, limitations imposed on net operating and capital losses (if any) and changes in applicable tax law could result in increases or decreases in the Fund's net asset value per share, which could be material.</li></ul><ul type="square"><li style="margin-left:-20px">Tax Law Changes Risk. Changes in tax laws, regulations or interpretations of those laws or regulations in the future could adversely affect the Fund or its MLPs or other investments, and could adversely affect the Fund and its shareholders. In some cases, such changes could have retroactive effect.</li></ul><b>Equity Securities Risk</b> is the risk that stock prices will fall over short or long periods of time. In addition, common stocks represent a share of ownership in a company, and rank after bonds and preferred stock in their claim on the company's assets in the event of bankruptcy.<br/><br/><b>Short Sales Risk </b>is the risk of loss associated with any appreciation on the price of a security borrowed in connection with a short sale. The Fund may engage in short sales that are not made "against-the-box," which means that the Fund may sell short securities even when they are not actually owned or otherwise covered at all times during the period the short position is open. Short sales that are not made "against-the-box" theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.<br/><br/><b>Derivatives Risk </b>is the risk that an investment in derivatives, such as swaps, options and futures, may not correlate completely to the performance of the underlying securities or index and may be volatile, and may result in a loss greater than the principal amount invested. Equity derivatives may also be subject to liquidity risk, as well as the risk that the derivative is mispriced and that the value established for a derivative may be different than what would be produced through the use of another methodology or if it had been priced using market quotations. In addition, recent legislation has called for a new regulatory framework for the derivatives market. The impact of the new regulations are still unknown, but has the potential to increase the costs of using derivatives, may limit the availability of some forms of derivatives or the Fund's ability to use derivatives, and may adversely affect the performance of some derivative instruments used by the Fund as well as the Fund's ability to pursue its investment objective through the use of such instruments.<br/><br/><b>Counterparty Risk </b>is the risk that a counterparty (the other party to a transaction or an agreement or the party with whom the Fund executes transactions) to a transaction with the Fund may be unable or unwilling to make timely principal, interest or settlement payments, or otherwise honor its obligations.<br/><br/><b>Leverage Risk </b>is the risk associated with the use of leverage for investment purposes to create opportunities for greater total returns. Leverage may increase the risk of loss, cause fluctuations in the market value of the Fund's portfolio to have disproportionately large effects or cause the net asset value ("NAV") of the Fund generally to decline faster than it would otherwise.<br/><br/><b>Debt Securities Risk</b> is the risk that the issuer of a debt security may fail to pay interest or principal when due, and that changes in market interest rates may reduce the value of debt securities or reduce the Fund's returns. The Fund may invest in debt securities, principally below investment grade securities, but also including investment grade securities and other debt obligations. The Fund's investments in high yield debt securities generally subject the Fund to greater risk than investments in securities with higher ratings. Such securities are regarded by the rating organizations as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation.<br/><br/><b>Senior Loans Risk </b>is the risk that the issuer or a senior may fail to pay interest or principal when due, and changes in market interest rates may reduce the value of the senior loan or reduce the Fund's returns. The risks associated with senior loans are similar to the risks of high yield debt securities. Senior loans and other debt securities are also subject to the risk of price declines and to increases in prevailing interest rates. The Fund's investments in senior loans are typically below investment grade and are considered speculative because of the credit risk of their issuers.<br/><br/><b>Mid-Cap Company Risk </b>is the risk of investing in securities of mid-cap companies that could entail greater risks than investments in larger, more established companies. Mid-cap companies tend to have more narrow product lines, more limited financial resources and a more limited trading market for their stocks, as compared with larger companies. As a result, their stock prices may decline significantly as market conditions change.<br/><br/><b>Small-Cap Company Risk </b>is the risk that investing in the securities of small-cap companies either directly or indirectly through investments in Underlying Funds may pose greater market and liquidity risks than larger, more established companies, because of limited product lines and/or operating history, limited financial resources, limited trading markets, and the potential lack of management depth. In addition, the securities of such companies are typically more volatile than securities of larger capitalization companies.<br/><br/><b>Foreign Investment Risk </b>is the risk that investing in foreign (non-U.S.) securities either directly or indirectly may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to smaller markets, differing reporting, accounting and auditing standards, nationalization, expropriation or confiscatory taxation, currency blockages and political changes or diplomatic developments. The costs of investing in many foreign markets are higher than the U.S. and investments may be less liquid. These risks may be heightened for emerging markets securities. Recently, additional risks have arisen related to the high levels of debt of various European countries such as Greece, Italy and Spain. One or more member states might exit the European Union, placing its currency and banking system in jeopardy. These problems, and related political and monetary efforts to address these problems, may increase the potential for market declines in one or more member states that can spread to global markets. These increased risks may persist and may result in greater volatility in the securities markets and the potential for impaired liquidity and valuation.<br/><br/><b>Currency Risk </b>is the risk that fluctuation in exchange rates will adversely affect the value of the Fund's foreign currency holdings and investments denominated in foreign currencies.<br/><br/><b>Hedging Risk</b> is the risk that, although intended to limit or reduce investment risk, hedging strategies may also limit or reduce the potential for profit. There is no assurance that hedging strategies will be successful.<br/><br/><b>Market Risk</b> is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. The Fund's share price will fluctuate with changes in the market value of its portfolio securities. Many factors can affect this value and you may lose money by investing in the Fund.<br/><br/><b>Emerging Markets Risk </b>is the risk of investing in securities of companies located in emerging market countries, which primarily includes increased foreign investment risk. Emerging markets countries may have unstable governments and/or economies that are subject to sudden change, and may also lack the legal, business and social framework to support securities markets, which tends to make investments less liquid and more volatile.<br/><br/><b>Portfolio Turnover Risk </b>is the risk that the Fund's high portfolio turnover will increase its transaction costs and may result in increased realization by the Fund and thus lower after-tax performance, as well as reduce the amount of cash available for distribution to Fund shareholders.<br/><br/><b>Fixed Income Securities Risk </b>is the risk that fixed income securities will decline in value because of changes in interest rates. The value of fixed income securities typically changes as interest rates fluctuate. During periods of rising interest rates, fixed income securities generally decline in value. Conversely, during periods of falling interest rates, fixed income securities generally rise in value. This kind of market risk is generally greater for a fund investing in fixed income securities with longer durations.<br/><br/><b>Credit Risk </b>is the risk that the Fund could lose money if the issuer or guarantor of a fixed income security, or the counterparty of a derivatives contract or repurchase agreement, is unable or unwilling (or is perceived to be unable or unwilling) to make timely payment of principal and/or interest, or to otherwise honor its obligations.<br/><br/><b>Exchange-Traded Funds Risk </b>is the risk that the ETFs in which the Fund invests will not be able to replicate exactly the performance of the indices they track and may result in a loss. In addition, shareholders bear both their proportionate share of the Fund's expenses and similar expenses of the underlying investment company when the Fund invests in shares of another investment company.<br/><br/><b>Interest Rate Risk </b>is the risk that fixed income securities will decline in value because of changes in interest rates. A fund with a longer average portfolio duration will be more sensitive to changes in interest rates than a fund with a shorter average portfolio duration. <br/><br/><b>Illiquid and Restricted Securities Risk</b> is the risk that the Adviser or Sub-Adviser, as applicable, may not be able to sell illiquid or restricted securities at the price it would like or may have to sell them at a loss. Securities of non-U.S. issuers, and emerging markets securities in particular, are subject to illiquidity risk.<br/><br/><b>Legislation Risk </b>is the risk that to the extent that state, federal or international regulators impose additional requirements or restrictions with respect to MLPs, the availability of MLP investments may be adversely affected.<br/><br/><b>Management Risk </b>is the risk that the Adviser or Sub-Adviser may be incorrect in its assessment of the intrinsic value of the securities the Fund holds which may result in a decline in the value of Fund shares and failure to achieve its investment objective. The Fund's portfolio managers use quantitative analyses and/or models. Any imperfections or limitations in such analyses and models could affect the ability of the portfolio managers to implement strategies.<br/><br/><b>Non-Diversification Risk </b>is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund's investment in fewer issuers may result in the Fund's shares being more sensitive to the economic results of those issuers.<br/><br/><b>Market Disruption Risk </b>is the risk of unusual and extreme volatility in the equity and debt markets and in the prices of individual investments resulting from a period of acute stress recently experienced by domestic and international markets starting in the real estate and financial sectors and then moving to other sectors of the world economy. These market conditions could add to the risk of short-term volatility of the Fund.<br/><br/><b>Non-Payment Risk </b>is the risk of non-payment of scheduled interest and/or principal with respect to debt securities. Non-payment would result in a reduction of income to the Fund, a reduction in the value of the obligation experiencing non-payment and a potential decrease in the NAV of the Fund.<br/><br/><b>Prepayment Risk </b>is the risk that part or all of the principal of a debt security will be paid prior to the scheduled maturity. Pursuant to the relevant debt agreement, a borrower may be required, and may have the option at any time, to prepay the principal amount of a debt security, in some instances without incurring a prepayment penalty. In the event that like-yielding debt is not available in the marketplace, the prepayment of and subsequent reinvestment by the Fund in high yield debt could have a materially adverse affect on the yield of the Fund's investment portfolio. Prepayments may have a beneficial impact on income due to receipt of prepayment penalties, if any, and any facility fees earned in connection with reinvestment.<br/><br/><b>Industry Specific Risk </b>is the risk that the MLPs in which the Fund invests will be impacted by risks specific to the industry MLPs serve, including the following:<ul type="square"><li style="margin-left:-20px">Fluctuations in commodity prices may impact the volume of commodities transported, processed, stored or distributed.</li></ul><ul type="square"><li style="margin-left:-20px">Reduced volumes of natural gas or other energy commodities available for transporting, processing, storing or distributing may affect the profitability of an MLP.</li></ul><ul type="square"><li style="margin-left:-20px">Slowdowns in new construction and acquisitions can limit growth potential.</li></ul><ul type="square"><li style="margin-left:-20px">A sustained reduced demand for crude oil, natural gas and refined petroleum products that could adversely affect MLP revenues and cash flows.</li></ul><ul type="square"><li style="margin-left:-20px">Depletion of the natural gas reserves or other commodities if not replaced, which could impact an MLP's ability to make distributions.</li></ul><ul type="square"><li style="margin-left:-20px">Changes in the regulatory environment could adversely affect the profitability of MLPs.</li></ul><ul type="square"><li style="margin-left:-20px">Extreme weather and environmental hazards could impact the value of MLP securities.</li></ul><ul type="square"><li style="margin-left:-20px">Rising interest rates which could result in a higher cost of capital and drive investors into other investment opportunities.</li></ul><ul type="square"><li style="margin-left:-20px">Threats of attack by terrorists on energy assets could impact the market for MLPs.</li></ul><b>Securities Market Risk </b>is the risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting particular companies or the securities markets generally. A general downturn in the securities market may cause multiple asset classes to decline in value simultaneously.<br/><br/>An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its goal.Highland Tax-Exempt Fund<br/><br/><b>(formerly &#8220;Pyxis Tax-Exempt Fund&#8221;)</b>When you sell Fund shares, they may be worth less than what you paid for them. Consequently, you can lose money by investing in the Fund.<b>Non-Diversification Risk </b>is the risk that an investment in the Fund could fluctuate in value more than an investment in a diversified fund. As a non-diversified fund for purposes of the 1940 Act, the Fund may invest a larger portion of its assets in the securities of a few issuers than a diversified fund. A non-diversified fund's investment in fewer issuers may result in the Fund's shares being more sensitive to the economic results of those issuers.An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class C and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.<b>Performance </b>The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandfunds.com/Funds&#8212;-Performance or by calling 1-877- 665-1287.The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index.1-877- 665-1287www.highlandfunds.com/Funds&#8212;-PerformanceAs with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future.The bar chart shows the performance of the Fund&#8217;s Class A shares as of December 31.The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below.The highest calendar quarter total return for Class A Shares of the Fund was 7.54% for the quarter ended September 30, 2012 and the lowest calendar quarter total return was -0.55% for the quarter ended December 31, 2012. The Fund&#8217;s year-to-date total return for Class A Shares through December 31, 2012 was 8.40%.Average Annual Total Returns<br/>(For the periods ended December 31, 2012)0.0840.02140.06790.08340.01390.09020.0480.03130.00590.08230.08770.09510.0996After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <br/><br/>In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods. The calculations assume that an investor holds the shares in a taxable account, is in the actual historical highest individual federal marginal income tax bracket for each year and would have been able to immediately utilize the full realized loss to reduce his or her federal tax liability. However, actual individual tax results may vary and investors should consult their tax advisers regarding their personal tax situations.After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.Actual after-tax returns depend on an investor&#8217;s tax situation and may differ from those shown. For example, after-tax returns shown are not relevant to investors who hold Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.After-tax returns in the table above are shown for Class A Shares only and after-tax returns for other share classes will vary.In some cases, average annual return after taxes on distributions and redemptions is higher than the average annual return before taxes and the average annual return after taxes on distributions because of realized losses that would have been sustained upon the sale of fund shares immediately after the relevant periods.year-to-date total return2012-12-310.084highest calendar quarter total return2012-09-300.0754lowest calendar quarter total return2012-12-31-0.00552011-12-012011-12-012011-12-012011-12-012011-12-012011-12-012011-12-01<div style="display:none">~ http://www.pyxisais.com/role/ScheduleExpenseExampleNoRedemptionTransposedHighlandEnergyMLPFund column period compact * ~</div>
The following table describes the fees that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts on purchases of Class A Shares if you and your family invest, or agree to invest in the future, at least $50,000 in Highland Funds II alternative funds, equity funds and/or asset allocation funds, or at least $100,000 in the Fund or in other Highland Funds II fixed income funds. More information about these and other discounts is available from your financial professional and in &#8220;Reduced Sales Charges for Class A Shares&#8221; section on page 87 of the Fund&#8217;s Prospectus and &#8220;Programs for Reducing or Eliminating Sales Charges&#8221; section on page 62 of the Fund&#8217;s Statement of Additional Information.<div style="display:none">~ http://www.pyxisais.com/role/ScheduleAnnualTotalReturnsHighlandEnergyMLPFundBarChart column period compact * ~</div>
The bar chart and the Average Annual Total Returns table below provide some indication of the risks of investing in the Fund by showing changes in the performance of the Fund&#8217;s Class A Shares for each full calendar year and by showing how the Fund&#8217;s average annual returns compare with the returns of a broad-based securities market index. As with all mutual funds, the Fund&#8217;s past performance (before and after taxes) does not predict how the Fund will perform in the future. The Fund&#8217;s performance reflects applicable fee waivers and/or expense limitations in effect during the periods presented. Both the chart and the table assume the reinvestment of dividends and distributions. The bar chart does not reflect the deduction of applicable sales charges for Class A Shares. If sales charges had been reflected, the returns for Class A Shares would be less than those shown below. The returns of Class B, Class C, Class R and Class Y Shares would have substantially similar returns as Class A because the classes are invested in the same portfolio of securities and the annual returns would differ only to the extent that the classes have different expenses. Updated performance information is available by visiting www.highlandsfunds.com/Funds&#8212;Performance or by calling 1-877-665-1287.Principal Investment Strategies<b>Principal Risks</b>Annual Total Returns-0.0175-0.005-0.02-0.02-0.02-0.02Highland Total Return Fund<br/><br/><b>(formerly &#8220;Pyxis Total Return Fund&#8221;)</b>The contingent deferred sales charge ("CDSC") on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter. The contingent deferred sales charge ("CDSC") on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter. The contingent deferred sales charge (“CDSC”) on Class C Shares is 1.00% for redemption of shares within the first year of purchase. There is no CDSC on Class C Shares thereafter. The BofA Merrill Lynch US Dollar LIBOR Month Constant Maturity Index tracks the interest rate offered by a specific group of London banks for U.S. dollar deposits with a three-month maturity.Class C shares are subject to a 1% contingent deferred sales charge ("CDSC") for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan."Other Expenses" include indirect fees and expenses of Acquired Funds less than 0.01%. "Acquired Fund" means any investment company in which the Fund invests or has invested during the period."Other Expenses" are based on estimated amounts for the current fiscal year. Class C shares are subject to a 1% contingent deferred sales charge ("CDSC") for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan. "Other Expenses" include indirect fees and expenses of Acquired Funds less than 0.01%. "Acquired Fund" means any investment company in which the Fund invests or has invested during the period. Class C shares are subject to a 1% contingent deferred sales charge (“CDSC”) for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan. Class C shares are subject to a 1% contingent deferred sales charge ("CDSC") for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan. "Other Expenses" include indirect fees and expenses of Acquired Funds less than 0.01%. "Acquired Fund" means any investment company in which the Fund invests or has invested during the period. Class C shares are subject to a 1% contingent deferred sales charge ("CDSC") for redemption of shares within one year of purchase. This CDSC does not apply to redemptions under a systematic withdrawal plan.After Expense Reimbursement (as a % of redemption proceeds on redemptions within 90 days; currently suspended)(as a % of redemption proceeds on redemptions within 90 days; currently suspended) Effective February 1, 2012, the Fund changed its benchmark from MSCI World Index to the MSCI All Country World Index because the Adviser believes that the MSCI All Country World Index is a more appropriate comparative, broad-based market index for the Fund.(as % of amount redeemed within two months or less after date of purchase)Highland Capital Management Fund Advisors, L.P. (the "Adviser") has contractually agreed to limit the total annual operating expenses (exclusive of fees paid by the Fund pursuant to its distribution plan under Rule 12b-1 under the Investment Company Act of 1940, as amended, taxes, brokerage commissions and other transaction costs, acquired fund fees and expenses and extraordinary expenses) of the Fund to 1.00% of average daily net assets attributable to any class of the Fund. The Expense Cap will continue through at least January 31, 2014, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The Trust, on behalf of the Fund, has contractually agreed to pay the Adviser all amounts previously paid, waived or reimbursed by the Adviser with respect to the Fund pursuant to the Expense Cap, provided that the amount of such additional payment in any year, together with all other expenses of the Fund, in the aggregate, would not cause the Fund's total annual operating expenses in any such year to exceed the amount of the Expense Cap, and provided further that no additional payments by the Trust will be made with respect to amounts paid, waived or reimbursed by the Adviser more than 36 months after the date the Fund accrues a liability with respect to such amounts paid, waived or reimbursed by the Adviser."Other Expenses" are based on estimated amounts for the current fiscal year. Other Expenses" does not reflect deferred and current income tax liability, if any, incurred by the Fund. The Fund accrues deferred income tax liability for its future tax liability associated with the capital appreciation of its investments and the distributions received by the Fund on equity securities of MLPs considered to be return of capital and for any net operating gains. The Fund's accrued deferred tax liability is reflected each day in the Fund's net asset value per share. The Fund's current and deferred tax liability, if any, depends upon the Fund's net investment gains and losses and realized and unrealized gains and losses on investments and therefore may vary greatly from year to year depending on the nature of the Fund's investments, the performance of those investments and general market conditions. Actual income tax expense, if any, will be incurred over many years, depending on if and when investment gains and losses are realized, the then-current basis of the Fund's assets and other factors. See "Net Asset Value" in the Fund's prospectus. Highland Capital Management Fund Advisors, L.P. (the "Adviser") has contractually agreed to limit the total annual operating expenses (exclusive of fees paid by the Fund pursuant to its distribution plan under Rule 12b-1 under the Investment Company Act of 1940, as amended, taxes, such as deferred tax expenses, brokerage commissions and other transaction costs, acquired fund fees and expenses, and extraordinary expenses) of the Fund to 1.10% of average daily net assets of the Fund (the "Expense Cap"). The Expense Cap will continue through at least January 31, 2014, and may not be terminated prior to this date without the action or consent of the Fund's Board of Trustees. The Trust, on behalf of the Fund, has contractually agreed to pay the Adviser all amounts previously paid, waived or reimbursed by the Adviser with respect to the Fund pursuant to the Expense Cap, provided that the amount of such additional payment in any year, together with all other expenses of the Fund, in the aggregate, would not cause the Fund's total annual operating expenses in any such year to exceed the amount of the Expense Cap, and provided further that no additional payments by the Trust will be made with respect to amounts paid, waived or reimbursed by the Adviser more than 36 months after the date the Fund accrues a liability with respect to such amounts paid, waived or reimbursed by the Adviser. After reimbursement. Effective February 1, 2013, the Fund revised its investment strategy to focus on MLP investments. Returns through September 30, 2012 reflect the Fund's treatment as a regulated investment company under the Code. Returns after September 30, 2012 reflect the Fund's treatment as a regular corporation, or "C" corporation, for U.S. federal income tax purposes. As a result, returns after September 30, 2012 generally will be reduced by the amount of entity-level income taxes paid by the Fund as a regular corporation and thus will not necessarily be comparable to returns reported while the Fund still qualified as a regulated investment company. EX-101.SCH
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Schedule - Annual Fund Operating Expenses {- Pyxis Trend Following Fund}link:presentationLinklink:calculationLinklink:definitionLink000034 - Schedule - Expense Example {Transposed} {- Pyxis Trend Following Fund}link:presentationLinklink:calculationLinklink:definitionLink000035 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Trend Following Fund}link:presentationLinklink:calculationLinklink:definitionLink000036 - Schedule - Annual Total Returns - Pyxis Trend Following Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000037 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Trend Following Fund}link:presentationLinklink:calculationLinklink:definitionLink000038 - Document - Risk/Return Detail {Unlabeled} - Pyxis Trend Following Fundlink:presentationLinklink:calculationLinklink:definitionLink000039 - Disclosure - Risk/Return Detail Data {Elements} - Highland Trend Following Fundlink:presentationLinklink:calculationLinklink:definitionLink000041 - Document - Risk/Return Summary {Unlabeled} - Highland Core America Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000042 - Schedule - Shareholder Fees {- Pyxis Core America Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000043 - Schedule - Annual Fund Operating Expenses {- Pyxis Core America Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000044 - Schedule - Expense Example {Transposed} {- Pyxis Core America Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000045 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Core America Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000046 - Schedule - Annual Total Returns - Pyxis Core America Equity Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000047 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Core America Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000048 - Document - Risk/Return Detail {Unlabeled} - Pyxis Core America Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000049 - Disclosure - Risk/Return Detail Data {Elements} - Highland Core America Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000051 - Document - Risk/Return Summary {Unlabeled} - Highland Dividend Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000052 - Schedule - Shareholder Fees {- Pyxis Dividend Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000053 - Schedule - Annual Fund Operating Expenses {- Pyxis Dividend Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000054 - Schedule - Expense Example {Transposed} {- Pyxis Dividend Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000055 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Dividend Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000056 - Schedule - Annual Total Returns - Pyxis Dividend Equity Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000057 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Dividend Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000058 - Document - Risk/Return Detail {Unlabeled} - Pyxis Dividend Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000059 - Disclosure - Risk/Return Detail Data {Elements} - Highland Dividend Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000061 - Document - Risk/Return Summary {Unlabeled} - Highland Premier Growth Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000062 - Schedule - Shareholder Fees {- Pyxis Premier Growth Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000063 - Schedule - Annual Fund Operating Expenses {- Pyxis Premier Growth Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000064 - Schedule - Expense Example {Transposed} {- Pyxis Premier Growth Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000065 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Premier Growth Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000066 - Schedule - Annual Total Returns - Pyxis Premier Growth Equity Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000067 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Premier Growth Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000068 - Document - Risk/Return Detail {Unlabeled} - Pyxis Premier Growth Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000069 - Disclosure - Risk/Return Detail Data {Elements} - Highland Premier Growth Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000071 - Document - Risk/Return Summary {Unlabeled} - Highland Small-Cap Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000072 - Schedule - Shareholder Fees {- Pyxis Small-Cap Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000073 - Schedule - Annual Fund Operating Expenses {- Pyxis Small-Cap Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000074 - Schedule - Expense Example {Transposed} {- Pyxis Small-Cap Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000075 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Small-Cap Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000076 - Schedule - Annual Total Returns - Pyxis Small-Cap Equity Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000077 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Small-Cap Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000078 - Document - Risk/Return Detail {Unlabeled} - Pyxis Small-Cap Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000079 - Disclosure - Risk/Return Detail Data {Elements} - Highland Small-Cap Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000081 - Document - Risk/Return Summary {Unlabeled} - Highland Global Select Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000082 - Schedule - Shareholder Fees {- Pyxis Global Select Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000083 - Schedule - Annual Fund Operating Expenses {- Pyxis Global Select Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000084 - Schedule - Expense Example {Transposed} {- Pyxis Global Select Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000085 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Global Select Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000086 - Schedule - Annual Total Returns - Pyxis Global Select Equity Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000087 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Global Select Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000088 - Document - Risk/Return Detail {Unlabeled} - Pyxis Global Select Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000089 - Disclosure - Risk/Return Detail Data {Elements} - Highland Global Select Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000091 - Document - Risk/Return Summary {Unlabeled} - Highland International Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000092 - Schedule - Shareholder Fees {- Pyxis International Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000093 - Schedule - Annual Fund Operating Expenses {- Pyxis International Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000094 - Schedule - Expense Example {Transposed} {- Pyxis International Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000095 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis International Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000096 - Schedule - Annual Total Returns - Pyxis International Equity Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000097 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis International Equity Fund}link:presentationLinklink:calculationLinklink:definitionLink000098 - Document - Risk/Return Detail {Unlabeled} - Pyxis International Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000099 - Disclosure - Risk/Return Detail Data {Elements} - Highland International Equity Fundlink:presentationLinklink:calculationLinklink:definitionLink000101 - Document - Risk/Return Summary {Unlabeled} - Highland Fixed Income Fundlink:presentationLinklink:calculationLinklink:definitionLink000102 - Schedule - Shareholder Fees {- Pyxis Fixed Income Fund}link:presentationLinklink:calculationLinklink:definitionLink000103 - Schedule - Annual Fund Operating Expenses {- Pyxis Fixed Income Fund}link:presentationLinklink:calculationLinklink:definitionLink000104 - Schedule - Expense Example {Transposed} {- Pyxis Fixed Income Fund}link:presentationLinklink:calculationLinklink:definitionLink000105 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Fixed Income Fund}link:presentationLinklink:calculationLinklink:definitionLink000106 - Schedule - Annual Total Returns - Pyxis Fixed Income Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000107 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Fixed Income Fund}link:presentationLinklink:calculationLinklink:definitionLink000108 - Document - Risk/Return Detail {Unlabeled} - Pyxis Fixed Income Fundlink:presentationLinklink:calculationLinklink:definitionLink000109 - Disclosure - Risk/Return Detail Data {Elements} - Highland Fixed Income Fundlink:presentationLinklink:calculationLinklink:definitionLink000111 - Document - Risk/Return Summary {Unlabeled} - Highland Tax-Exempt Fundlink:presentationLinklink:calculationLinklink:definitionLink000112 - Schedule - Shareholder Fees {- Pyxis Tax-Exempt Fund}link:presentationLinklink:calculationLinklink:definitionLink000113 - Schedule - Annual Fund Operating Expenses {- Pyxis Tax-Exempt Fund}link:presentationLinklink:calculationLinklink:definitionLink000114 - Schedule - Expense Example {Transposed} {- Pyxis Tax-Exempt Fund}link:presentationLinklink:calculationLinklink:definitionLink000115 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Tax-Exempt Fund}link:presentationLinklink:calculationLinklink:definitionLink000116 - Schedule - Annual Total Returns - Pyxis Tax-Exempt Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000117 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Tax-Exempt Fund}link:presentationLinklink:calculationLinklink:definitionLink000118 - Document - Risk/Return Detail {Unlabeled} - Pyxis Tax-Exempt Fundlink:presentationLinklink:calculationLinklink:definitionLink000119 - Disclosure - Risk/Return Detail Data {Elements} - Highland Tax-Exempt Fundlink:presentationLinklink:calculationLinklink:definitionLink000121 - Document - Risk/Return Summary {Unlabeled} - Highland Total Return Fundlink:presentationLinklink:calculationLinklink:definitionLink000122 - Schedule - Shareholder Fees {- Pyxis Total Return Fund}link:presentationLinklink:calculationLinklink:definitionLink000123 - Schedule - Annual Fund Operating Expenses {- Pyxis Total Return Fund}link:presentationLinklink:calculationLinklink:definitionLink000124 - Schedule - Expense Example {Transposed} {- Pyxis Total Return Fund}link:presentationLinklink:calculationLinklink:definitionLink000125 - Schedule - Expense Example, No Redemption {Transposed} {- Pyxis Total Return Fund}link:presentationLinklink:calculationLinklink:definitionLink000126 - Schedule - Annual Total Returns - Pyxis Total Return Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000127 - Schedule - Average Annual Total Returns {Transposed} {- Pyxis Total Return Fund}link:presentationLinklink:calculationLinklink:definitionLink000128 - Document - Risk/Return Detail {Unlabeled} - Pyxis Total Return Fundlink:presentationLinklink:calculationLinklink:definitionLink000129 - Disclosure - Risk/Return Detail Data {Elements} - Highland Total Return Fundlink:presentationLinklink:calculationLinklink:definitionLink000131 - Document - Risk/Return Summary {Unlabeled} - Highland Energy MLP Fundlink:presentationLinklink:calculationLinklink:definitionLink000132 - Schedule - Shareholder Fees {- Highland Energy MLP Fund}link:presentationLinklink:calculationLinklink:definitionLink000133 - Schedule - Annual Fund Operating Expenses {- Highland Energy MLP Fund}link:presentationLinklink:calculationLinklink:definitionLink000134 - Schedule - Expense Example {Transposed} {- Highland Energy MLP Fund}link:presentationLinklink:calculationLinklink:definitionLink000135 - Schedule - Expense Example, No Redemption {Transposed} {- Highland Energy MLP Fund}link:presentationLinklink:calculationLinklink:definitionLink000136 - Schedule - Annual Total Returns - Highland Energy MLP Fund [BarChart]link:presentationLinklink:calculationLinklink:definitionLink000137 - Schedule - Average Annual Total Returns {Transposed} {- Highland Energy MLP Fund}link:presentationLinklink:calculationLinklink:definitionLink000138 - Document - Risk/Return Detail {Unlabeled} - Highland Energy MLP Fundlink:presentationLinklink:calculationLinklink:definitionLink000139 - Disclosure - Risk/Return Detail Data {Elements} - Highland Energy MLP Fundlink:presentationLinklink:calculationLinklink:definitionLinkEX-101.CAL
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pf7-20130211_cal.xml
XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
EX-101.DEF
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pf7-20130211_def.xml
XBRL TAXONOMY EXTENSION DEFINITION LINKBASE